P2.1A (LO 1,2,3,4, 5), AP Lott Company uses a job order cost system and applies ov overhead to produc tion on the basis of direct labor costs. On January 1, 2020, Job 50 incurred prior to January 1 on this job were as follows: direct materials $20,000, direc and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost and was part of finished goods inventory. There was a S15,000 balance in the Raw Material was the only job in process. The costs Is Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and c 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. Of this amount $16,000 related to employer payroll taxes 3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labo $20,000, depreciation expense on equipment S12,000, and various other manufacturing overhead costs on account $16,000 Assigned direct materials and direct labor to jobs as follows Job No. 50 51 52 Direct Materials $10,000 39,000 30,000 Direct Labor $ 5,000 25,000 20,000 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 c. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred journal entries to record the assignment of direct materials, direct labor, and manufac Job 50 and the manufacturing overhead costs incurred during the month of January d. Prepare the turing overhead rate calculated in (a). Post all costs to the job cost sheets as necessary costs to production. In assigning manufacturing overhead costs, use the overhead e. Total the job c ost 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 jobs) 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