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 $21,000, direct labor $12,600, and manufacturing overhead $16,800. As of January 1, Job 49 had been completed at a cost of $94,500 and was part of finished goods inventory. There was a $15,750 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 $128,100 and $165,900, respectively. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $94,500 on account. Incurred factory labor costs of $73,500. Of this amount $16,800 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,850; indirect labor $21,000; depreciation expense on equipment $12,600; and various other manufacturing overhead costs on account $16,800. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 51 Direct Materials $10,500 40,950 31,500 Direct Labor $5,250 26,250 21,000 52 Part 1 Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $882,000, direct labor costs of $735,000, and direct labor hours of 21,000 for the year. Predetermined overhead rate 120 % Part 2 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 (1) Raw Materials Inventory 94,500 Accounts Payable 94,500 (2) Factory Labor 73,500 Employer Payroll Taxes Payable 16,800 Factory Wages Payable 56,700 (3) Manufacturing Overhead 68,250 Raw Materials Inventory 17,850 Factory Labor 21,000 Accumulated Depreciation Equipment 12,600 Accounts Payable 16,800 Part 3 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 82,950 Raw Materials Inventory 82,950 (2) Work in Process Inventory 52,500 Factory Labor 52,500 (3) Work in Process Inventory 63,000 Manufacturing Overhead 63,000 Part 4 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. Post all costs to the job cost sheets as necessary. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $ 21,000 $ 12,600 $ 16,800 Jan. 10,500 5,250 6,300 $ 31,500 $ 17,850 $ 23,100 Cost of completed job Direct materials 31,500 Direct labor 17,850 Manufacturing overhead 23,100 Total cost $ 72,450 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 40,950 $ 26,250 $ 31,500 $ 40,950 $ 26,250 $ 31,500 Cost of completed job Direct materials $ 40,950 Direct labor 26,250 Manufacturing overhead 31,500 Total cost $ 98,700 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 31,500 21,000 $ 25,200 Part 5 Your answer is correct. 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.) Debit Credit Account Titles and Explanation Finished Goods Inventory 171,150 Work in Process Inventory 171,150 Part 6 Your answer is correct. 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.) Debit Credit No. Account Titles and Explanation (1) Accounts Receivable 294,000 294,000 Sales Revenue (To record sale of jobs) (2) Cost of Goods Sold 166,950 Finished Goods Inventory 166,950 (To record cost of jobs) Part 7 Your answer is incorrect. 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 $ Job No. 50 e Textbook and Media Job No. 51 Job No. 52 List of Accounts Jobs 50 and 51 Jobs 51 and 52 pts: 1 of 3 used Submit Answer Save for Later Using multiple attempts will impact your score Jobs 50 and 52 Part 8 What is the amount of over- or underapplied overhead? Manufacturing Overhead $