Exercise 02-13 Adjusting factory overhead LO P4 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system April 30 May 31 Inventories Raw materials $44,000 $ 54,000 Work in process 10,400 21,700 Finished goods 64,000 37,600 Activities and information for May Raw materials purchases (paid with cash) 212,000 Factory payroll (paid with cash) 349,000 Factory overhead Indirect materials 17,000 Indirect labor 82,000 Other overhead costs 122, 000 Sales (received in cash) 1, 420,000 Predetermined overhead rate based on direct labor cost 70% Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold: Complete this question by entering your answers in the tabs below.