Problem 2-1A (Video) Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the nly job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,400, direct labor $12,840, and manufacturing overhead $17,120. As of January 1, Job 49 had been completed at a cost of $96,300 and was part of finished goods inventory. There was a $16,050 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 $130,540 and $169,060, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $96,300 on account. 2. Incurred factory labor costs of $74,900. Of this amount $17,120 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $18,190; indirect labor $21,400; depreciation expense on equipment $12,840; and various other manufacturing overhead costs on account $17,120. 4. Assigned direct materials and direct labor to jobs as follows. Job Direct Direct No. Materials Labor 50 $10,700 $5,350 51 41,730 26,750 57 32,100 21,400 Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $898,800, direct labor costs of $749,000, and direct labor hours of 21,400 for the year. Predetermined overhead rate (120% Your answer is partially correct. Try again. 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 Debit Credit (1) Raw Materials Inventory 196300 Accounts Payable 96300 (2) abor 74900 Factory Wages Payable (57780 Employer Payroll Taxes Payable 17120 (3) Manufacturing Overhead 69550 Raw Materials Inventory 18190 Factory Labor 21400 Accumulated Depreciation-Equipment 12840 Accounts Payable 17120 Your answer is partially correct. Try again Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) 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 s entered. Do not indent manually.)No. Account Titles and Explanation Debit Credit (1) Work in Process Inventory 84530 Raw Materials Inventory 84530 (2) Work in Process Inventory 53500 Factory Labor 53000 (3) Work in Process Inventory 164200 Manufacturing Overhead 764200 Your answer is correct. 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 $ 21400 $ 12840 $ 17120 Jan. 10700 5350 6420 $ 32100 $ 18190 $ 23540 Cost of completed job Direct materials $ 32100 Direct labor 18190 Manufacturing overhead 23540 Total cost $ 73830 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 41730 $ 26750 $ 32100 $ 41730 $ 26750 $ 32100 Cost of completed job Direct materials $ 41730 Direct labor 26750 Manufacturing overhead 32100 Total cost $ 100580 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. 32100 $ 21400 25680 x Your answer is incorrect. Try again. 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.)Account Titles and Explanation Debit Credit X Your answer is partially correct. Try again. 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 Debit Credit (1) Accounts Receivable 299600 Sales Revenue 1299600 (To record sale of jobs) (2) Finished Goods Inventory 170130 Sales Revenue 1170130 (To record cost of jobs) Your answer is correct. 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 $ 100580 Job No. 51 Your answer is correct. What is the amount of over- or underapplied overhead? Manufacturing Overhead $ 5350 Underapplied