ANSWER C

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 $20,400, direct labor $12,240, and manufacturing overhead $16,320. As of January 1, Job 49 had been completed at a cost of $91,800and was part of finished goods inventory. There was a $15,300balance 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 $124,440and $161,160, respectively. The following additional events occurred during the month.

1.Purchased additional raw materials of $91,800on account.2.Incurred factory labor costs of $71,400. Of this amount $16,320related to employer payroll taxes.3.Incurred manufacturing overhead costs as follows: indirect materials $17,340; indirect labor $20,400; depreciation expense on equipment $12,240; and various other manufacturing overhead costs on account $16,320.4.Assigned direct materials and direct labor to jobs as follows.

Job No.

Direct Materials

Direct Labor

50$10,200$5,1005139,78025,5005230,60020,400

(a)

Correct answer icon

Your answer is correct.

Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $856,800, direct labor costs of $714,000, and direct labor hours of20,400for the year.

Predetermined overhead rateenter the Predetermined overhead rate in percentages

%

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List of Accounts

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(c)

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Your answer is partially correct.

Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(1)

enter an account title to record the purchase of raw materials

enter a debit amount

enter a credit amount

enter an account title to record the purchase of raw materials

enter a debit amount

enter a credit amount

(2)

enter an account title to recordthe factory labor costs incurred

enter a debit amount

enter a credit amount

enter an account title to recordthe factory labor costs incurred

enter a debit amount

enter a credit amount

enter an account title to recordthe factory labor costs incurred

enter a debit amount

enter a credit amount

(3)

enter an account title to recordthe manufacturing overhead costs incurred during the month of January

enter a debit amount

enter a credit amount

enter an account title to recordthe manufacturing overhead costs incurred during the month of January

enter a debit amount

enter a credit amount

enter an account title to recordthe manufacturing overhead costs incurred during the month of January

enter a debit amount

enter a credit amount

enter an account title to recordthe manufacturing overhead costs incurred during the month of January

enter a debit amount

enter a credit amount

enter an account title to recordthe manufacturing overhead costs incurred during the month of January

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

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