The following information is available for Lock-Tite Company, which produces special-order security products job order costing system. Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs. Sales (received in cash) Predetermined overhead rate based on direct labor cost Raw materials purchases for cash. Direct materials usage. Indirect materials usage. ntries for the above transactions for the month of May April 30 $43,000 10,200 63,000 $ May 31 52,000 21,300 35,600 210,000 345,000 15,000 80,000 120,000 1,400,000 70%
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
s
![Required information
[The following information applies to the questions displayed below.]
The following information is available for Lock-Tite Company, which produces special-order security products and L
job order costing system.
Inventories
Raw materials
Work in process
Finished goods
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
Indirect materials
Indirect labor
Other overhead costs
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.
Prepare journal entries for the above transactions for the month of May.
April 30
$43,000
10,200
63,000
$
May 31
52,000
21,300
35,600
210,000
345,000
15,000
80,000
120,000
1,400,000
70%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6dfdf89-ec98-4580-b072-b49085ddbb11%2F6e75b093-ae7f-417a-92cc-0a48f7d62f24%2F75cz60q_processed.jpeg&w=3840&q=75)
Step by step
Solved in 4 steps
