Crane 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 $24,800, direct labor $14,880, and manufacturing overhead $19,840. As of January 1, Job 49 had been completed at a cost of $111,600 and was part of finished goods inventory. There was a $18,600 balance in the Raw Materials Inventory account. During the month of January, Crane 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 $151,280 and $195,920, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $111,600 on account.
2.		Incurred factory labor costs of $86,800. Of this amount $19,840 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $21,080; indirect labor $24,800; depreciation expense on equipment $14,880; and various other manufacturing overhead costs on account $19,840.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,400		$6,200
51		48,360		31,000
52		37,200		24,800

Problem 20-01A a, c, d1, b, d2, e-h (Video) Crane Company SRE A rder overkad $19 840 Asof ]an arv t sveta and app AG a erhead to pr du tian on the basis at dra t labor mats. n Ianuary 1 202 lah S0 aas the on V ob in prneass. T e co curred pr r to Ianuary 1 on this ob Nertal ows: direct mat Job 49 had been car pleted at a cast of 51 1 1 600 and was part of fi shed goods ir entary. There was a 518 600 balance in the RH Materials l ventory account. als S74 O direct a ar14 Ran and manufacturin During the month of January, Crane Co pany began production cr J "1 and 2, and completed J s 30 and 1. Jubs 49 and 5 were also sold cn account during thermor for 151,ZUU and $1.95 920, respect e y lhe following a ditional events occurred during the mo t Purchased additicnal raw matcrials af $111,G00 on accour. 2. Incured factory laber coats of $80,800. of this amount $19,810 related to emplover payroll taxocs. 3 incumed manufacturing overhead costs as follows: indirect materials S21,080; ndrect labor 24.900 : depreaat on expense on equipment S14 880; and various other manufacturing overhead costs on account $19.840 4 Assigned direct materials and direct labor to jobs as follows Job No. Direct Material Direct Labor 12,400 48,350 7,200 $5,200 31,000 24,800 Calculate the predetermined overhead rate for 2020, assuming Crane Company estimates total manufacturing overhead costs o 1,041,600, direct laber costs of $868,000, and direct labor hours cf 24,800 for the vear. Predstermined awerhead ratc Pre sre he gume ertnes u record the purthias u raw materials, 2 the ac ry abo tus s ncurred ar 3 the manu ac urriy gverhead costs mu red dur" y ther grt of anuary t account es dre du om dtrca y "iden eo w er, dmoun s en ered. No, Acount Tales and Explanation u ro m en monud Debit Credit Propara the foumal entries to record the asslonmant af direct macerials, 2) direct labor, and (3) manufacturing overhead costs to production. In asslaning manufacturing ovarhead costs, use the owerhead rate calculated in ta). (Codit account titios are autonvatically Indentod when amount Is antered. Do not indent maneally. re automatically Inden No. Acant Ttles annd Explanation Oebit Credit Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for ob 50. Pust all costs to the job ost sheets as necessary t Materials Direct Labor Cost of completed job Diract materials Direct labor Manufacturing overhead lutal cust Job No. 51 Date Jan. Direct Materials Direct Labor Manufacturing Overhead Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 52 Date Direct Materials Jan. Direct Labor Manufacturing Overhead Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit To record sale of jobs) To record cost of jobs) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? Finished Goods Inventory What is the amount of over- or underapplied overhead? Manufacturing Overhead