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 $21,200, direct labor $12,720, and manufacturing overhead $ 16,960. As of January 1, Job 49 had been completed at a cost of $95,400 and was part of finished goods inventory. There was a $15,900 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 $129,320 and $167,480, respectively. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $95,400 on account. Incurred factory labor costs of $74,200. Of this amount $16,960 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $18,020; indirect labor $21,200; depreciation expense on equipment $12,720; and various other manufacturing overhead costs on account $16,960. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 51 52 Direct Materials $10,600 41,340 31,800 Direct Labor $5,300 26,500 21,200 Part 5 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 Credit Debit eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later Using multiple attempts will impact your score. 10% score reduction after attempt 2 Part 6 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 (1) (To record sale of jobs) (2) (To record cost of jobs) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 1096 score reduction after attempt 2 Part 7 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 $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 1096 score reduction after attempt 2 Part 8 What is the amount of over-or underapplied overhead? Manufacturing Overhead $ eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later Using multiple attempts will impact your score. 1096 score reduction after attempt 2 Formula=(Estimated manufacturing overhead/total estimated direct labor costs)*100 (890400/742000)*100=120% Requirement 2: Journal entries: Date Account title & explanation Ref. Debit Credit 1 Raw material inventory 95400 Accounts payable 95400 (To record purchase of raw mat.) 2 Factory labor 74200 Factory wages payable 57240 Employer payroll taxes payable 16960 (To record factory labor cost) 3 Manufacturing overhead 68900 Raw material inventory 18020 Factory labor 21200 Accumulated depreciation 12720 Accounts payable 16960 (To record manufacturing OH cost) Requirement 3: Date Account title & explanation Ref. Debit Credit Work in process inventory 83740 Raw material inventory 83740 (To record assignment of direct mat) 2. Work in process inventory 53000 Factory labor 53000 (To record assignment of direct labor) 3 Work in process inventory 63600 Manufacturing overhead 63600 (To record assignment of mfg.OH) Requirement 4: Job no. 50: Date Direct mat. Direct labor Mfg.OH Beg. 21200 12720 16960 Jan 10600 5300 6360 Total 31800 18020 23320 Cost of completed jobs: Direct materials 31800 Direct labor 18020 Manufacturing OH 23320 Total 73140 Job no. 51: Date Direct mat. Direct labor Mfg.OH Jan 41340 26500 31800 Total 41340 26500 31800 Cost of completed jobs: Direct materials 41340 Direct labor 26500 Manufacturing OH 31800 Total 99640 Job no. 51: Date Direct mat. Direct labor Mfg.OH Jan 31800 21200 25440 **Manufacturing overhead is 120% of direct labor