Concord 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 $20,800, direct labor $12,480, and manufacturing overhead $16,640. As of January 1, Job 49 had been completed at a cost of $93,600 and was part of finished goods inventory. There was a $15,600 balance in the Raw Materials Inventory account. During the month of January, Concord 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 $126,880 and $164,320, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $93,600 on account. 2. 3. 4. Incurred factory labor costs of $72,800. Of this amount $16,640 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,680; indirect labor $20,800; depreciation expense on equipment $12,480; and various other manufacturing overhead costs on account $16,640. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $10,400 $5,200 51 40,560 26,000 52 31,200 20,800 Calculate the predetermined overhead rate for 2020, assuming Concord Company estimates total manufacturing overhead costs of $873,600, direct labor costs of $728,000, and direct labor hours of 20,800 for the year. Predetermined overhead rate (c) eTextbook and Media List of Accounts 120 % Attempts: 2 of 5 used Your answer is 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 Debit (1) Raw Materials Inventory Accounts Payable (2) Factory Labor Factory Wages Payable Employer Payroll Taxes Payable (3) Manufacturing Overhead Raw Materials Inventory Factory Labor Accumulated Depreciation-Equipment Accounts Payable 93600 Credit 72800 67600 93600 56160 16640 17680 20800 12480 16640 Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Account Titles and Explanation (1) Debit Credit (2) (3)