(b)

Job Cost sheet

Item	Job 50	Job 51	Job 52
Opening WIP
Total Costs assigned durimg the year
Total

(c) Journal Entries for Job Order Costing:

S.No.	Account	Debit $	Credit $
1.	Material inventory
	Accounts payable
	(being raw materials purchased)
2.	Labor Costs
	Cash
	(being labor charges incurred)
3.	Manufacturing overheads
	Material Inventory
	Labor Costs
	Fixed Assets
	Cash

(d)

Work in process50
Work in process51
Work in process52
Inventories
Labor Costs
Manufacturing overheads

(e)

Finished Goods
Work in process50
Work in process51

(f)

Accounts receivable
Revenue

(g)

Balance of Finished Goods Inventory account (a month end) =

(h)

Underapplied Overhead =

Problem 16-1A (Part Level Submission) Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 23,400, direct labor $ 14,040, and manufacturing overhead $ 18,720. As of January 1, Job No. 49 had been completed at a cost of $ 105,300 and was part of finished goods inventory. There was a $ 17,550 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 $142,740 and $ 184,860, respectively. The following additional events occurred during the month 1. Purchased additional raw materials of $ 105,300 on account. 2. Incurred factory labor costs of $ 81,900. Of this amount $ 18,720 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $ 19,890 ; indirect labor $ 23,400 depreciation expense on equipment $ 14,040 ; and various other manufacturing overhead costs on account $ 18,720. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 51 52 Direct Materials Direct Labor 11,700 45,630 35,100 5,850 29,250 23,400 Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $982,800, direct labor costs of $819,000, and direct labor hours of 23,400 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate