Problem 15-1A Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job No. 50 was the only job i this job were as follows: direct materials $23,000, direct labor $13,800, and manufacturing overhead $18,400. As of January 1, Job No. 49 had been completed at a cost of $103,500 and was part of finished goods inventory. There was a $17,250 balance in the Raw Materials Inventory account. process. The costs incurred prior to January 1 on During the month of January, Lott Company beqan 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 $140,300 and $181,700, respectively. The following additional events occurred during the month. Purchased additional raw materials of $103,500 on account. 1 Incurred factory labor costs of $80,500. Of this amount $18,400 related to employer payroll taxes. 3 Incurred manufacturing overhead costs as follows: indirect materials $19,550; indirect labor $23,000; depreciation expense on equipment $13,800; and various other manufacturing overhead costs on account $18.400 follows, Assigned direct materials and direct labor to jobs 4. Direct Labor Job No. Direct Materials $11.500 $5,750 50 51 44,850 28,750 52 34,500 23,000 $805.000, and direct labor hours of 23,000 for the year. Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs (Round answer to the nearest whole percent, e.g. 25%. ) $966.000, direct labor costs Predetermined overhead rate 120% Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50. Job No. 50 Direct Materials Direct Labor Manufacturing Overhead Date 18400 Beg. 2300 13800 Jan. 11500 5750 13800 19550 Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Manufacturing Overhead Direct Materials Direct Labor Date Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 52 Direct Materials Direct Labor Manufacturing Overhead Date Jan. t Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and 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 Debit Credit (1) (2) (3) Prepare the journal entries to record the assignment of direct materials, direct labor, and 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.) No. Account Titles and Explanation Credit Debit (11 (2) 3) SHOW LIST OF ACCOUNTS INK TO TE LINK TO TEXT INK EXT ITNK TEXT VIDEO: SIMILAR PROBLEM Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered, Do not indent manually.) Debit Account Titles and Explanation Credit Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Credit Debit (1) (To record sale of jobs) (2) (To record cost of 1obs) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINKC TEXT VIDEO: SIMILAR PROBLEM 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 the amount of over- or underapplied overhead? What Manufacturing Overhead Click if you would like to Show Work for this question: Open Show Work