Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $22.000 direct labor $13,200, and manufacturing overhead $17,600. As of January 1, Job 49 had been completed at a cost of $99,000 and was part of finished goods inventory. There was a $16,500 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 $134.200 and $173,800, respectively. The following additional events occurred during the month 1 2 3. Purchased additional raw materials of $99,000 on account Incurred factory labor costs of $77,000. Of this amount $17,600 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: Indirect materials $18,700; indirect labor $22.000; depreciation expense on equipment $13.200 and various other manufacturing overhead costs on account $17,600. Assigned direct materials and direct labor to jobs as follows 4 Job No. 50 51 52 Direct Materials $11.000 42.900 33,000 Direct Labor $5,500 27.500 22.000 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) 2) (3) Openjob 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 S Beg Jan Cost of completed job Direct materials Direct labor Manufacturing overhead S Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead $ Jan Cost of completed job Direct materials Direct labor Manutacturing overhead Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead $ Jan S 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 $22.000 direct labor $13,200, and manufacturing overhead $17,600. As of January 1, Job 49 had been completed at a cost of $99,000 and was part of finished goods inventory. There was a $16,500 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 $134.200 and $173,800, respectively. The following additional events occurred during the month 1 2 3. Purchased additional raw materials of $99,000 on account Incurred factory labor costs of $77,000. Of this amount $17,600 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: Indirect materials $18,700; indirect labor $22.000; depreciation expense on equipment $13.200 and various other manufacturing overhead costs on account $17,600. Assigned direct materials and direct labor to jobs as follows 4 Job No. 50 51 52 Direct Materials $11.000 42.900 33,000 Direct Labor $5,500 27.500 22.000 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) 2) (3) Openjob 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 S Beg Jan Cost of completed job Direct materials Direct labor Manufacturing overhead S Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead $ Jan Cost of completed job Direct materials Direct labor Manutacturing overhead Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead $ Jan S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles Practice And Problems

Authors: Jagdish Prakash

1st Edition

9327244745, 978-9327244748

More Books

Students also viewed these Accounting questions