Lowry Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour hours. On January 1, 2022, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000, direct labour $6,000, and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $45,000 and was part of finished goods inventory. There was a $5.000 balance in the Raw Materials. Inventory account.

During the month of January, the company began production on Jobs 26 and 27 and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $65,000 and $74.000, respectively. The following additional events occurred during the month. The company purchased additional raw materials for $10,000 on account. -17

- The company purchased additional raw Inaterials for $40,000 on account. - It incurred factory labour costs of $32,400. - It incurred the following manufacturing everhead costs: indirect materials $10,000. indirect labour $7,500, depreciation expense \$1 2.000, and various other manufacturing overhead costs on account $11,000. * IIt ass gned direct inaterials and direct labour to iotos as foliows: - The company purchased additional raw Inaterials for $40,000 on account. - It incurred factory labour costs of $32,400. - It incurred the following manufacturing everhead costs: indirect materials $10,000. indirect labour $7,500, depreciation expense \$1 2.000, and various other manufacturing overhead costs on account $11,000. * IIt ass gned direct inaterials and direct labour to iotos as foliows