Problem 15-01A Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,400, direct labor $12,240, and manufacturing overhead $16,320. As of January 1, Job 49 had been completed at a cost of $91,800 and was part of finished goods inventory. There was a $15,300 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 $124,440 and $161,160, respectively. The following additional events occurred during the month. 1. 2. 3. dy Purchased additional raw materials of $91,800 on account. Incurred factory labor costs of $71,400. Of this amount $16,320 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,340; indirect labor $20,400; depreciation expense on equipment $12,240; and various other manufacturing overhead costs on account $16,320. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 51 Direct Materials Direct Materials $10,200 39,780 39,780 30,600 Direct Labor $5,100 25,500 20,400 52 Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $856,800, direct labor costs of $714,000, and direct labor hours of 20,400 for the year. Com Predetermined overhead rate Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory tabor 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 Prepare the journal entries to record the assignment of (1) direct materias ) direct labor, and manufacturing overhead costs to production. In asining manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when it is entered, No. Account Titles and explanation 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. Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead s are automatically indented when amount is entered. Do not 10 15.07 Prepare the mal entry to record the completion of anys) during the month credit en Pem 04 Recor Prepare the journal entries to record the sale of any obs) during the month (Credo a n tes are automatically indented when amounts entered to not inden Act es and Explanation Crede To record of the record of What is the balance in the finished Goods Inventory account at the end of the month? What does this balance conset of Finished Goods Inventory What is the amount of over or underapped overhead Manufacturing Overheads HOW TO ACCOUNT Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatica Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically inc No. Account Titles and Explanation Debit Credit (To record sale of jobs) (To record cost of jobs) SHOW LIST OF ACCOUNTS What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of ? Finished Goods Inventory s SHOW LIST OF ACCOUNTS What is the amount of over- or underapplied overhead? Manufacturing Overheads SHOW LIST OF ACCOUNTS