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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	$	47,000			$	60,000
Work in process		11,000				22,900
Finished goods		67,000				43,600
Activities and information for May
Raw materials purchases (paid with cash)						218,000
Factory payroll (paid with cash)						361,000
Factory overhead
Indirect materials						23,000
Indirect labor						88,000
Other overhead costs						128,000
Sales (received in cash)						1,480,000
Predetermined overhead rate based on direct labor cost						80	%

Determine whether there is over or underapplied overhead.

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. View transaction list Journal entry worksheet Record entry to allocate (close) underapplied/overapplied overhead to cost of goods sold Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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