Bertrand Manufacturing uses a job - order cost system and applies overhead to production on the basis of direct labour costs . On January 1 2020 , Job No 50 was the only job in process . The costs incurred prior to January 1 on the job were as follows : direct materials $ 30,000 . Direct labour $ 15,000 and manufacturing overhead $ 20,000 . As of January 1 , Job No 49 had been completed at a cost of and was part of finished goods inventory . There was a $ 25,000 balance in the Raw Materials Inventory account . During the month of January Bertrand Manufacturing bean 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 and $ 198.000 respectively . The following additional events occurred during the month : 1. Bertrand purchased additional raw materials of $ 100,000 on account . 2. It incurred factory labour costs of $ 75,000 . Of this amount $ 18,000 related to employee payroll taxes . 3. It incurred manufacturing overhead costs as follows : indirect materials $ 18,000 , indirect labour $ 17,000 , depreciation expense $ 14,000 and various other manufacturing overhead costs on account $ 22,000 . 4. It assigned direct materials and direct labour to jobs as follows : Job . No Direct Materials Direct Labour 50 $ 12.000 $ 7,000. 51 42.000 28,000 52 35,000 22.000 Instructions : a . Calculate the predetermined overhead rate for 20 % assuming Bertrand Manufacturing estimates total manufacturing overhead costs of $ 1.5 million , direct labour costs of 750,000 and direct labour hours of 20,000 for the year . 2 marks b Open job cost sheets for Jobs 50 51 52. Enter the January 1 balances on the job cost sheet for Job No. 50. 6 marks Prepare the journal entries to record the purchase of raw materials the factory labour costs incurred and the manufacturing overhead costs incurred during the month of January marks d . Prepare the journal entries to record the assignment of direct materials direct labour and manufacturing overhead costs to b