The following information is available for Lock-Safe Company, which produces special-order security products

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 $ 36,000 $ 51,000
Goods in process 9,700 20,000
Finished goods 65,000 34,800
Activities and information for May
Raw materials purchases (paid with cash) 190,000
Factory payroll (paid with cash) 415,000
Factory overhead
Indirect materials 13,000
Indirect labor 76,000
Other overhead costs 98,500
Sales (received in cash) 1,250,000
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.

1. Factory payroll costs in cash.
Factory payroll Debit 415,000
Cash Credit 415,000

2. Direct labor usage.
Goods in process inventory Debit 339,000
Factory payroll Credit 339,000

3. Indirect labor usage.

Factory overhead Debit 76,000
Factory payroll Credit 76,000
Explanation:
2.
Direct labor is equal to total payroll (415,000) less Indirect labor (76,000) = $339,000