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	$	44,500			$	55,000
Work in process		10,500				21,900
Finished goods		64,500				38,600
Activities and information for May
Raw materials purchases (paid with cash)						213,000
Factory payroll (paid with cash)						351,000
Factory overhead
Indirect materials						18,000
Indirect labor						83,000
Other overhead costs						123,000
Sales (received in cash)						1,430,000
Predetermined overhead rate based on direct labor cost						75	%

Determine whether there is over or underapplied overhead.

Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Answer is not complete. Factory Overhead Overapplied overhead 39,250 263,250 Applied overhead Actual overhead ead224,0000 Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Answer is complete but not entirely correct. No Transaction General Journal Debit Credit Factory overhead 39,250 Cost of goods sold 39,250