no need to solve question P20.1A

ER 20 Job Order Costing : Set A border case P20.1A (LO 1, 2, 3, 4, 5) 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 I on this job were as follows: direct materials S20,000, direct labor $12.000 and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15.000 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 $122.000 and $158,000, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $90,000 on account. 2. Incurred factory labor costs of $70,000. Or this amount $16,000 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $17.000, indirect labor $20,000, depreciation expense on equipment S12.000, and various other manufacturing overhead costs on account $16,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials $10,000 39,000 30,000 Direct Labor $ 5.000 25,000 20.000 31 Instructions a. Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total man ufacturing overhead costs of $840,000, direct labor costs of $700.000, and direct labor hours of 20,000 for the year. b. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. c. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred. and the manufacturing overhead costs incurred during the month of January, d. Prepare the journal entries to record the assignment of direct materials, direct labor, and manufac turing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary. e. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month. f. Prepare the journal entry (or entries) to record the sale of any job(s) during the month. g. What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? h. What is the amount of over- or underapplied overhead? Prepare en 120.3A (LO 1, 2, 3, 4, 5) Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1. 2020, the general ledger for Case Inc. contains the following data. Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32.640 Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650 schedule. ( Exc Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Linton Cost Element Direct materials Direct labor Manufacturing overhead Rodgers $ 600 320 Customer Job Stevens $ 800 540 675 $ 900 580 725 400 51.320 $2.015 $2.205 During June, raw materials purchased on account were $4.900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following Time Tickets S 850 800 Customer Job Rodgers KOSS Stevens Linton Rodgers 360 Materials Requisition Slips $ 800 2,000 500 1.300 300 4.900 1.500 $6,400 1.200 390 3,600 1.200 $4,800 General use Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18.900. Each customer paid in full. Instructions a. Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred: (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. b. Post the entries to Work in Process Inventory c. Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. d. Prepare a cost of goods manufactured schedule for June. d. Cos mar