1.) Prepare entries in a job order cost system and job cost sheets.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs.

On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows:

direct materials $20,000,

direct labor $12,000, and

manufacturing overhead $16,000.

As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory.

There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51.

Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively.

The following additional events occurred during the month:

1.Purchased additional raw materials of $90,000 on account.

2.Incurred factory labor costs of $70,000. Of this amount $16,000 related to employer payroll taxes.

3.Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor $20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account $16,000.

4.Assigned direct materials and direct labor to jobs as follows.

2 - Question:

Prepare entries in a job order cost system and partial income statement.

For the year ended December 31, 2020, the job cost sheets of Cinta Company contained the following data

Job Number

Explanation

Direct Materials

Direct Labor

Manufacturing Overhead

Total Costs

7640

Balance 1/1

$25,000

$24,000

$28,800

$77,800

Current year's costs

30,000

36,000

43,200

109,200

7641

Balance 1/1

11,000

18,000

21,600

50,600

Current year's costs

43,000

48,000

57,600

148,600

7642

Current year's costs

58,000

55,000

66,000

179,00