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 $49,000 $ 50,000 Work in process Finished goods 18,300 9,600 64,000 34,800 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) 173,000 200,000 Factory overhead Indirect materials Indirect labor 11,000 46,000 other overhead costs 105,000 Sales (received in cash) 1,700,000 Predetermined overhead rate based on direct labor cost 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. 55%
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 $49,000 $ 50,000 Work in process Finished goods 18,300 9,600 64,000 34,800 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) 173,000 200,000 Factory overhead Indirect materials Indirect labor 11,000 46,000 other overhead costs 105,000 Sales (received in cash) 1,700,000 Predetermined overhead rate based on direct labor cost 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. 55%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:# Journal Entry Worksheet
### Task: Record the entry for direct labor usage.
**Note:** Enter debits before credits.
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**Table for Journal Entry:**
| Transaction | General Journal | Debit | Credit |
|-------------|------------------|-------|--------|
| 1 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
---
**Buttons:**
- **Record entry:** To save the current journal entry.
- **Clear entry:** To clear all fields in the current journal entry.
- **View general journal:** To view the entire general journal.
---
**Navigation:**
- **Prev:** Go to the previous page.
- **3:** Page number indicator.
- **4:** Current page number.
- **of 7:** Total number of pages.
- **Next:** Go to the next page.
---
This journal entry worksheet page is used to input journal transactions, specifically for direct labor usage in this context. The table is where you will input your transaction details, including debits and credits. Below the table, there are options to record or clear the entry, as well as to view the general journal. Users can navigate through the pages using the previous and next buttons at the bottom of the screen.
This tool is a part of an educational website designed to teach students and professionals how to properly record financial transactions in a general journal.
Transcribed Image Text:### 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 uses a job order costing system.
**Inventories** (Amounts in $)
| Category | April 30 | May 31 |
|-------------------|----------|---------|
| Raw materials | 49,000 | 50,000 |
| Work in process | 9,600 | 18,300 |
| Finished goods | 64,000 | 34,800 |
**Activities and information for May**
| Activity/Information | Amount (in $) |
|-----------------------------------|---------------|
| Raw materials purchases (paid with cash) | 173,000 |
| Factory payroll (paid with cash) | 200,000 |
| Factory overhead | |
| • Indirect materials | 11,000 |
| • Indirect labor | 46,000 |
| • Other overhead costs | 105,000 |
| Sales (received in cash) | 1,700,000 |
| Predetermined overhead rate based on direct labor cost | 55% |
1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in cash.
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