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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

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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 $24,200, direct labor $14,520, and manufacturing overhead $19,360. As of January 1, Job 49 had been completed at a cost of $108,900 and was part of finished goods inventory. There was a $18,150 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 $147,620 and $191,180, respectively. The following additional events occurred during the month Purchased additional raw materials of $108,900 on account incurred factory labor costs of $84,700. Of this amount $19.360 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $20,570; indirect labor $24,200, depreciation expense on equipment $14,520; and various other manufacturing overhead costs on account $19,360, Assigned direct materials and direct labor to jobs as follows. 1 2 3 Job No. 50 Direct Materials $12,100 47.190 36,300 Direct Labor $6,050 30,250 24,200 51 52 Part 1 Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,016,400, direct labor costs of $847,000, and direct labor hours of 24,200 for the year. Predetermined overhead rate 96 eTextbook and Media Part 2 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 tities are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) (3) Part 3 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.) Debit Credit No. Account Titles and Explanation (1) (2) (3)

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