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 $24.800, 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, 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 $151.280 and $195,920, respectively. The following additional events occurred during the month 1. 2 3 Purchased additional raw materials of $111,600 on account Incurred factory labor costs of $86,800. Of this amount $19.840 related to employer payroll taxes. 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. Assigned direct materials and direct labor to jobs as follows. 4. Job No 50 51 Direct Materials $12,400 48.360 Direct Labor $6.200 31,000 Job No. Direct Labor 50 Direct Materials $12,400 48,360 37,200 $6,200 51 31,000 52 24,800 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 (1) Work in Process Inventory Debit Credit Raw Materials Inventory (2) Work in Process Inventory Factory Labor (3) Work in Process Inventory Manufacturing Overhead 1/4 Open job cost sheets for Jobs 50 51 and 52. Enter the January 1 balances on the job cost sheet for Job SQ Post all costs to the job cost sheets as necessary Job Na 50 Date Direct Materials Direct Labor Manufacturing Overhead Bes $ 2800 $ $ 19.840 Jan 12400 6200 $ $ 21080 $ 28520 Cost of completed job Direct materials $ 14858 Direct labor 21080 Manufacturing overhead 28520 Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan $ 48 360 $ 31.000 $ $ 48.360 $ 31.000 $ Cost of completed job Direct materials $ Direct labor Manufacturing overhead Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ $ $ 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 I Debit Credit Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically Indente amount is entered. Do not Indent manually) No. Account Tities and Explanation (1) Debit Credit I (To record sale of jobs) (2) (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 $ Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,041,600, direct labor costs of $868,000, and direct labor hours of 24,800 for the year. Predetermined overhead rate 120 % Debit Credit Ho. Account Titles and Explanation 1) Raw Materials Inventory 111,600 Accounts Payable 111,600 (2) Factory Labor 86,800 Factory Wages Payable 66,960 Employer Payroll Taxes Payable 19,840 (3 ) Manufacturing Overhead 80,600 Accounts Payable 19,840 Accumulated Depreciation-Equipment 14.880 Raw Materials Inventory 21,080 Factory Labor 24,800