Question
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
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 | $ | 36,000 | $ | 41,000 | |||
| Work in process | 10,000 | 20,900 | |||||
| Finished goods | 54,000 | 34,900 | |||||
| Activities and information for May | |||||||
| Raw materials purchases (paid with cash) | 189,000 | ||||||
| Factory payroll (paid with cash) | 300,000 | ||||||
| Factory overhead | |||||||
| Indirect materials | 8,000 | ||||||
| Indirect labor | 69,000 | ||||||
| Other overhead costs | 119,000 | ||||||
| Sales (received in cash) | 1,100,000 | ||||||
| Predetermined overhead rate based on direct labor cost | 55 | % | |||||
Record the entry to assign direct materials to jobs.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
9780073526706
