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During the current month, a company that uses a job order cost accounting system incurred a monthly factory payroll of $180,000, paid in cash. Of this amount, $40,000 is classified as indirect labor and the remainder as direct. Prepare entries to record these transactions in the given order.

Record factory payroll of $180,000

Record the classification of direct and indirect labor cost

During the current month, a company that uses a job order cost accounting system incurred a monthly factory payroll of $175,000, paid in cash. Of this amount, $44,000 is classified as indirect labor and the remainder as direct for the production of Job 65A. Factory overhead is applied at 90% of direct labor. Prepare the entry to apply factory overhead to this job lot.

Record the entry to apply Factory overhead to job lot

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

	April 30		May 31
Inventories
Raw materials	$	39,000	$	52,000
Goods in process		10,000		21,500
Finished goods		63,000		31,000
Activities and information for May
Raw materials purchases (paid with cash)				189,000
Factory payroll (paid with cash)				410,000
Factory overhead
Indirect materials				12,000
Indirect labor				71,000
Other overhead costs				101,500
Sales (received in cash)				1,270,000
Predetermined overhead rate based on direct labor cost				65	%

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

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

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

	April 30		May 31
Inventories
Raw materials	$	40,000	$	51,000
Goods in process		10,300		22,000
Finished goods		60,000		30,400
Activities and information for May
Raw materials purchases (paid with cash)				188,000
Factory payroll (paid with cash)				405,000
Factory overhead
Indirect materials				12,000
Indirect labor				79,000
Other overhead costs				99,500
Sales (received in cash)				1,240,000
Predetermined overhead rate based on direct labor cost				65	%

1.	Factory payroll costs in cash.
2.	Direct labor usage.
3.	Indirect labor usage.

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

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

	April 30		May 31
Inventories
Raw materials	$	42,000	$	47,000
Goods in process		9,900		18,500
Finished goods		60,000		37,800
Activities and information for May
Raw materials purchases (paid with cash)				188,000
Factory payroll (paid with cash)				405,000
Factory overhead
Indirect materials				13,000
Indirect labor				80,000
Other overhead costs				104,000
Sales (received in cash)				1,290,000
Predetermined overhead rate based on direct labor cost				50	%

1.	Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts).
2.	Application of overhead to goods in process.

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

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

	April 30		May 31
Inventories
Raw materials	$	37,000	$	48,000
Goods in process		9,500		17,000
Finished goods		62,000		36,400
Activities and information for May
Raw materials purchases (paid with cash)				192,000
Factory payroll (paid with cash)				390,000
Factory overhead
Indirect materials				10,000
Indirect labor				77,000
Other overhead costs				96,000
Sales (received in cash)				1,200,000
Predetermined overhead rate based on direct labor cost				50	%

Determine whether there is over or underapplied overhead using T-accounts.

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