are eries in a job order co ewrand job cost shee P2.1A (LO 1, 2,3,4,S),AP olt Company uses a job order cost system and applies overhead to produc system and applies overhead to prodac OD THO ONS ror abor costs.On Jamuary 1,2020, Job 50 was the only job in process. The cots incurred prior to January 1 on this job were as follows: direct materials $20,000, direct lahor $12,000, and mansfactaring overhead $16,000. As of January 1, Job 49 had been completed at a cost of S90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account During the month of Janaary, 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 S158,000 respectively. The following additional events occurred during the month I. Purchased additional raw materials of $90,000 on account 2Incurred factory labor costs of $70,000. Of this amount $16,000 related to employer payroll tases Incurred manufacturing overhead costs as follows: Indirect materials $17,00, indirect labo 20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account $16,000 Assigned direct materials and direct labor to jobs as follows Job No Direct Muterials Direct Labor 5,000 25,000 20,000 10,000 39,000 51 52 instructions . Calculate the predetermined overhead rate for 24020, assuming Lot Company estimates total man ufacturing overhead costs of S840, direct labor costs of $700/00, and direct labor hours of b. Open job cost shoets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for e. Prepare the journal entries to record the parchase of raw materials, the factory labor costs incurred d. Prepare the journal entries to record the assignment of direct materials, direct labor, and manuac 20,000 for the year Job 50 turing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary Job 50, $69,000 Job 51, $94,000 e Total the job cost sheets for any jobis) completed during the month. Prepare the journal entry (or entries) to record the completion of any jobks) during the month Problems Set A 2-37 f. Prepare the journal entry (or entries) to record the sale of any job(s) during the month. g. What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? h. What is the amount of over- or underapplied overhead
