Problem 15 01A Lott Company uses a job onder 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 $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400 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 $141,520 and $183,200, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $104,400 on account. 2 Incurred factory labor costs of $81,200, of this amount $18,560 related to employer payroll taxes. Incurred manufacturing everhead costs as follows: indirect materials $19,720; indirect labor $23,200; deprecation expense on equipment $13,920, and various other manufacturing overhead costs on account $18,500 Assigned deect materials and direct labor to jobs as follows 4. Job No. Direct Materials Direct Labor 50 51 $11,600 $5,800 52 45,240 34,800 20,000 23,200 Calculate the predetermined merhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of 9974,400, direct labor costs of $812,000, and direct labor hours of 23,200 for the Predetermeed verhead rate 120 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 entered. Do not indent manually.) No. Account Titles and Explanation (1) Raw Materials Invenitury Debit Credit 104400 04400