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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$52,000 $70,000 Work in process 12,000 24,900 Finished goods 72,000 53,600 Activities and information for May Raw materials purchases (paid with cash) 228,000 Factory payroll (paid with cash) 381,000 Factory overhead Indirect materials 33,000 Indirect labor 98,000 Other overhead costs 138,000 Sales (received in cash) 1,580,000 Predetermined overhead rate based on direct labor cost 75% Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
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The following information is available for Lock-Tite Company, which produces special-order security...
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