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Please give answers. Thank You Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs.
Please give answers. Thank You
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows direct materials $20,000, 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 on January 1. 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 sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month 1. 2 3. Purchased additional raw materials of $90,000 on account Incurred factory labor costs of $70,000. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $12,000; and various other manufacturing overhead costs on account $16,000. Assigned direct materials and direct labor to jobs as follows. 4. Job No. Direct Materials $10,000 Direct Labor $5,000 50 51 39.000 25,000 52 30,000 20,000 Assigned indirect materials of $17,000 and indirect labor of $20,000 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 (list all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 90000 Accounts Payable 90000 (2) Manufacturing Overhead 65000 65000 (3) Factory Labor 70000 Employer Payroll Taxes Payable 54000 Employer Fringe Benefits Payable 16000 Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. 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 Labor Manufacturing Overhead Direct Materials 20000 16000 $ 12000 Beg 5000 6000 Jan 10000 $ 30000 17000 $ 22000 Cost of completed job $ Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ Cost of completed job Direct materials $ Direct labor Manufacturing overhead I Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ Step by Step Solution
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