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 $24,000, direct labor $14,400, and manufacturing overhead $19,200. As of January 1, Job 49 had been completed at a cost of $108,000 and was part of finished goods inventory. There was a $18,000 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 $146,400 and $189,600, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $108,000 on account.
2.		Incurred factory labor costs of $84,000. Of this amount $19,200 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $20,400; indirect labor $24,000; depreciation expense on equipment $14,400; and various other manufacturing overhead costs on account $19,200.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,000		$6,000
51		46,800		30,000
52		36,000		24,000

Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,008,000, direct labor costs of $840,000, and direct labor hours of 24,000 for the year.

Predetermined overhead rate

120 %

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.

Please assist in the correct answers for the red sections. Please see EXACT account titles below. Thank you!

List of accounts:

Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Cash Cost of Completed Service Contracts Cost of Goods Sold Depreciation Expense Employer Fringe Benefits Payable Employer Payroll Taxes Payable Factory Labor Factory Wages Payable Finished Goods Inventory Manufacturing Overhead Operating Overhead Prepaid Property Taxes Raw Materials Inventory Salaries and Wages Payable Sales Revenue Service Contracts in Process Service Salaries and Wages Supplies Utilities Payable Work in Process Inventory

Your answer is partially correct. Try again. 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) Raw Materials Inventory 108000 | Accounts Payable 108000 Factory Labor 84000 duonos Factory Wages Payable 64800 Manufacturing Overhead 78000 Raw Materials Inventory 20400 SHOW LIST OF ACCOUNTS