Lott 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 $23,400, direct labor $14,040, and manufacturing overhead $18,720. As of January 1, Job 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. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $11,700 $5,850 45,630 29,250 23,400 35,100 Your answer is correct. Calculate the predetermined overhead rate for 2020, 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. Predetermined overhead rate 120 % Attempts: 1 of 3 used 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 (1) Raw Materials Inventory 105300 Accounts Payable 105300 - (2) Factory Labor 81900 Employer Payroll Taxes Payable 18720 Factory Wages Payable 63180 (3) Manufacturing Overhead 76050 Raw Materials Inventory 19890 Salaries and Wages Payable 23400 Accumulated Depreciation Equipment 14040 Accounts Payable 18720 (d1) Your answer is correct. 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 Debit Credit (1) Work in Process Inventory 92430 Raw Materials Inventory 92430 (2) Work in Process Inventory 58500 Factory Labor 58500 Work in Process Inventory 70200 Manufacturing Overhead 70200 Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $ 23400 $ 14040 $ 18720 Jan. 11700 5850 7020 ta 35100 $ 19890 19890 $ 25740 Cost of completed job Direct materials 35100 Direct labor 19890 Manufacturing overhead 25740 Total cost 80730 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. 45630 29250 $ 35100 45630 29250 35100 Cost of completed job Direct materials 45630 Direct labor 29250 Manufacturing overhead 35100 Total cost $ 109980 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 35100 23400 $ 28080 (e) 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