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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 $23,600, direct labor $14,160, and manufacturing overhead $18,880. As of January 1, Job 49 had been completed at a cost of $106,200 and was part of finished goods inventory. There was a $17,700 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 $143.960 and $186,440, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $106.200 on account. Incurred factory labor costs of $82.600. Of this amount $18.880 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $20.060; indirect labor $23.600: depreciation expense on equipment $14.160, and various other manufacturing overhead costs on account $18.880. 4 Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $11.900 55.900 51 46.020 29.500 35.400 23.600 Open job 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 Beg $ 23600 $ 14160 $ 18880 Jan. 11800 5900 $ 35400 $ 20060 $ Cost of completed job Direct materials $ 35400 20060 Direct labor Manufacturing overhead $ Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 0 $ 0 $ 0 $ 46020 $ 29500 Cost of completed job Direct materials $ Direct labor Manufacturing overhead OOOO Total cost 5 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ (a) Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $991.200, direct labor costs of $826,000, and direct labor hours of 23,600 for the year. Predetermined overhead rate 120 e Textbook and Media List of Accounts Attempts; unlimited 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. (Credit account titles are automatically indented when amount is entened. Do not indent manually) No. Account Titles and Explanation Debit Credit Raw Materials Inventory 106200 106200 Accounts Payable 82600 (2) Factory Labor 6.3720 Factory Wages Payable 18880 Employer Payroll Taxes Payable 76700 (3) Manufacturing Overhead 20060 Raw Materials Inventory 23600 Factory Lebe 14160 Accumulated Depreciation Equipment 13880 Accounts Payable Your answer is correct 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.) Debit Credit No. Account Titles and Explanation 93220 Work in Process Inventory 93220 Raw Materials Inventory 59000 (2) Work in Process Inventory 59000 Factory Labor TOBOO (3) Work in Process Inventory 70800 Manufacturing Overhead