The following information is available for Lock-Down Company, whichproduces special-order security products and uses a job order costaccounting system.
April 30 May 31 Inventories Raw materials $ 37,000 $ 48,000 Goods in process 11,000 19,500 Finished goods 68,000 35,800 Activities and information for May Raw materials purchases (paid withcash) 189,000 Factory payroll (paid with cash) 390,000 Factory overhead Indirectmaterials 14,000 Indirect labor 76,000 Other overheadcosts 98,000 Sales (received in cash) 1,210,000 Predetermined overhead rate based ondirect labor cost 65 %
Prepare the journal entry to allocate (close) overapplied orunderapplied overhead to Cost of Goods Sold.(Omitthe "$" sign in your response.)
The following information is available for Lock-Down Company, whichproduces special-order security products and uses a job order costaccounting system. |
| April 30 | May 31 | ||||
| Inventories | |||||
| Raw materials | $ | 37,000 | $ | 48,000 | |
| Goods in process | 11,000 | 19,500 | |||
| Finished goods | 68,000 | 35,800 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid withcash) | 189,000 | ||||
| Factory payroll (paid with cash) | 390,000 | ||||
| Factory overhead | |||||
| Indirectmaterials | 14,000 | ||||
| Indirect labor | 76,000 | ||||
| Other overheadcosts | 98,000 | ||||
| Sales (received in cash) | 1,210,000 | ||||
| Predetermined overhead rate based ondirect labor cost | 65 | % | |||
| Prepare the journal entry to allocate (close) overapplied orunderapplied overhead to Cost of Goods Sold.(Omitthe "$" sign in your response.) |
Related questions
The following information is available for Lock-Down Company, whichproduces special-order security products and uses a job order costaccounting system. |
| April 30 | May 31 | ||||
| Inventories | |||||
| Raw materials | $ | 37,000 | $ | 48,000 | |
| Goods in process | 11,000 | 19,500 | |||
| Finished goods | 68,000 | 35,800 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid withcash) | 189,000 | ||||
| Factory payroll (paid with cash) | 390,000 | ||||
| Factory overhead | |||||
| Indirectmaterials | 14,000 | ||||
| Indirect labor | 76,000 | ||||
| Other overheadcosts | 98,000 | ||||
| Sales (received in cash) | 1,210,000 | ||||
| Predetermined overhead rate based ondirect labor cost | 65 | % | |||
| Prepare the journal entry to allocate (close) overapplied orunderapplied overhead to Cost of Goods Sold.(Omitthe "$" sign in your response.) |
| 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 | $ | 42,000 | $ | 38,000 | |
| Work in process | 9,800 | 18,200 | |||
| Finished goods | 63,000 | 33,000 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid with cash) | 194,000 | ||||
| Factory payroll (paid with cash) | 330,000 | ||||
| Factory overhead | |||||
| Indirect materials | 13,000 | ||||
| Indirect labor | 65,000 | ||||
| Other overhead costs | 111,000 | ||||
| Sales (received in cash) | 1,200,000 | ||||
| Predetermined overhead rate based on direct labor cost | 55 | % | |||
| Compute the following amounts for the month of May using T-accounts. |
| 1. | Cost of direct materials used. |
| 2. | Cost of direct labor used. |
| 3. | Cost of goods manufactured. |
| 4. | Cost of goods sold.* |
| 5. | Gross profit. |
| 6. | Overapplied or underapplied overhead. |
| *Do not consider any underapplied or overapplied overhead. |
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Westin Watercraft%u2019s predetermined overheadrate for year 2011 is 200% of direct labor. Information on thecompany%u2019s production activities during May 2011 follows.
| a. | Purchased raw materials on credit, $260,000. |
| b. | Paid$130,200 cash for factory wages. |
| c. | Paid$16,000 cash to a computer consultant to reprogram factoryequipment. |
| d. | Materials requisitions record use of the following materials forthe month. |
| Job 136 | $ | 48,000 | |
| Job 137 | 32,500 | ||
| Job 138 | 20,000 | ||
| Job 139 | 22,400 | ||
| Job 140 | 7,400 | ||
| Total direct materials | 130,300 | ||
| Indirect materials | 21,000 | ||
| Total materials used | $ | 151,300 | |
| | | ||
| e. | Timetickets record use of the following labor for the month. |
| Job 136 | $ | 12,100 | |
| Job 137 | 10,700 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,400 | ||
| Job 140 | 3,600 | ||
| Total direct labor | 103,700 | ||
| Indirect labor | 26,500 | ||
| Total | $ | 130,200 | |
| | | ||
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | SoldJobs 136 and 138 on credit at a total price of $545,000. |
| i. | The company incurred the following overheadcosts during the month (credit Prepaid Insurance for expiredfactory insurance). |
| Depreciation of factory building | $ | 68,500 | |
| Depreciation of factory equipment | 37,000 | ||
| Expired factory insurance | 12,000 | ||
| Accrued property taxes payable | 36,500 | ||
| j. | Applied overhead at month-end to the Goods inProcess (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost. |
| Required: | |
| 1. | Prepare a job cost sheet for each job worked onduring the month. (Omit the "$" sign in yourresponse.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
| | | | | | |
| 2. | Prepare journal entries to record the events andtransactions a through j. (Omit the "$" sign in yourresponse. ) |
| General Journal | Debit | Credit | |
| a. | |||
| b. | |||
| c. | |||
| d. | |||
| e. | |||
| f. | |||
| g. | |||
| h. | |||
| i. | |||
| j. | |||
| 4. | Prepare a report showing the total cost of eachjob in process and prove that the sum of their costs equals theGoods in Process Inventory account balance. Prepare similar reportsfor Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in yourresponse.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| $ | |
| Balance | $ |
| | |
| Finished Goods Inventory | |
| $ | |
| Balance | $ |
| | |
| Costof Goods Sold | |
| $ | |
| Balance | $ |
| | |
