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	$	47,500			$	61,000
Work in process		11,100				23,100
Finished goods		67,500				44,600
Activities and information for May
Raw materials purchases (paid with cash)						219,000
Factory payroll (paid with cash)						363,000
Factory overhead
Indirect materials						24,000
Indirect labor						89,000
Other overhead costs						129,000
Sales (received in cash)						1,490,000
Predetermined overhead rate based on direct labor cost						75	%

Determine whether there is over or underapplied overhead.

Factory Overhead

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

Journal entry worksheet

Note: Enter debits before credits.

Record entry to allocate (close) underapplied/overapplied overhead to cost of goods sold

Transaction	General Journal	Debit	Credit
1