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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			$	38,000
Work in process		9,700				18,300
Finished goods		56,000				33,600
Activities and information for May
Raw materials purchases (paid with cash)						185,000
Factory payroll (paid with cash)						150,000
Factory overhead
Indirect materials						15,000
Indirect labor						34,500
Other overhead costs						97,000
Sales (received in cash)						1,400,000
Predetermined overhead rate based on direct labor cost						55	%

1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.

Prepare journal entries for the above transactions for the month of May.

No	Transaction	General Journal	Debit	Credit
A	1	Raw materials inventory
		Cash
B	2	Work in process inventory
		Raw materials inventory
C	3	Factory overhead
		Raw materials inventory

Journal entry worksheet

• Record the entry for direct labor usage.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

Journal entry worksheet

• Record the entry for indirect labor usage.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2

Journal entry worksheet

• Record the entry for the cash payment of total factory payroll.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
3

Journal entry worksheet

• Record the application of overhead to work in process.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2

Journal entry worksheet

• Record other Factory overhead costs (excluding indirect materials and indirect labor). Record credit to Other Accounts.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1