Bonita 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 $ 23,800 direct labor $ 14,280, and manufacturing overhead $ 19,040. As of January 1, Job 49 had been completed at a cost of $ 107,100 and was part of finished goods inventory. There was a $ 17,850 balance in the Raw Materials Inventory account. During the month of January, Bonita Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $ 107,100 on account. Incurred factory labor costs of $ 83,300. Incurred manufacturing overhead costs as follows: indirect materials $ 20,230; indirect labor $23.800; depreciation expense on equipment $ 14,280; and various other manufacturing overhead costs on account $ 19,040. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 Direct Materials $ 11,900 46,410 Direct Labor $ 5,950 29,750 23,800 51 52 35,700 Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Bonita Company estimates total manufacturing overhead costs of $ 999,600, direct labor costs of $ 833,000, and direct labor hours of 23,800 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate 120 Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $ 23800 $ $ 14280 $ 19040 Jan. 11900 5950 7140 $ $ 35700 $ $ 20230 $ $ 26180 Cost of completed job Direct materials $ $ 35700 Direct labor 20230 Manufacturing overhead 26180 Total cost $ $ 82110 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead $ 35700 Jan. $ 46410 CA 29750 $ $ 46410 $ 29750 $ $ 35700 Cost of completed job Direct materials CA 46410 Direct labor 29750 Manufacturing overhead 35700 Total cost $ 111860 Job No.52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ CA 35700 $ $ 23800 $ $ 28560 Your answer is partially correct. (c) (d) Record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. Record the assignment of direct materials, direct labor, and manufacturing 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. Total the job cost sheets for any job(s) completed during the month. Record the completion of any job(s) during the month. Record the sale of any job(s) during the month. (e) (f) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) MANUFACTURING COSTS RAW MATERIALS FACTORY MANUFACTURING INVENTORY LABOR OVERHEAD 107100 83300 WORK IN PROCESS INVENTORY FINISHED GOODS INVENTORY COST OF GOODS SOLD 14280 19040 20230 -20230 (c) Purchase raw materials Incurred factory labor Factory depreciation Other overhead costs Indirect materials Indirect labor (d) Direct materials Direct labor Assigned overhead (e) Jobs completed (f) Jobs sold -23800 23800 -94010 94010 -59500 59500 -42800 42800 -193970 193970 189210 Bonita 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 $ 23,800 direct labor $ 14,280, and manufacturing overhead $ 19,040. As of January 1, Job 49 had been completed at a cost of $ 107,100 and was part of finished goods inventory. There was a $ 17,850 balance in the Raw Materials Inventory account. During the month of January, Bonita Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $ 107,100 on account. Incurred factory labor costs of $ 83,300. Incurred manufacturing overhead costs as follows: indirect materials $ 20,230; indirect labor $23.800; depreciation expense on equipment $ 14,280; and various other manufacturing overhead costs on account $ 19,040. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 Direct Materials $ 11,900 46,410 Direct Labor $ 5,950 29,750 23,800 51 52 35,700 Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Bonita Company estimates total manufacturing overhead costs of $ 999,600, direct labor costs of $ 833,000, and direct labor hours of 23,800 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate 120 Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $ 23800 $ $ 14280 $ 19040 Jan. 11900 5950 7140 $ $ 35700 $ $ 20230 $ $ 26180 Cost of completed job Direct materials $ $ 35700 Direct labor 20230 Manufacturing overhead 26180 Total cost $ $ 82110 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead $ 35700 Jan. $ 46410 CA 29750 $ $ 46410 $ 29750 $ $ 35700 Cost of completed job Direct materials CA 46410 Direct labor 29750 Manufacturing overhead 35700 Total cost $ 111860 Job No.52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ CA 35700 $ $ 23800 $ $ 28560 Your answer is partially correct. (c) (d) Record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. Record the assignment of direct materials, direct labor, and manufacturing 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. Total the job cost sheets for any job(s) completed during the month. Record the completion of any job(s) during the month. Record the sale of any job(s) during the month. (e) (f) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) MANUFACTURING COSTS RAW MATERIALS FACTORY MANUFACTURING INVENTORY LABOR OVERHEAD 107100 83300 WORK IN PROCESS INVENTORY FINISHED GOODS INVENTORY COST OF GOODS SOLD 14280 19040 20230 -20230 (c) Purchase raw materials Incurred factory labor Factory depreciation Other overhead costs Indirect materials Indirect labor (d) Direct materials Direct labor Assigned overhead (e) Jobs completed (f) Jobs sold -23800 23800 -94010 94010 -59500 59500 -42800 42800 -193970 193970 189210