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 only job in process The costs incurred prior to January 1 on this job were as follows direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480 As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory There was a $15,450 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 $125,660 and $162,740, respectively The following additional events occurred during the month 1 Purchased additional raw materials of $92,700 on account 2 Incurred factory labor costs of $72,100 Of this amount $16,480 related to employer payroll taxes 3 Incurred manufacturing overhead costs as follows indirect materials $17,510 indirect labor $20,600 depreciation expense on equipment $12,360 and various other manufacturing overhead costs on account $16,480 4 Assigned direct materials and direct labor to jobs as follows 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 is entered Do not indent manually ) No Account Titles and Explanation Debit Credit (1) (2) (3) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT 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 $

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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

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 only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 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 $125,660 and $162,740, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $92,700 on account.
2.		Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4.		Assigned direct materials and direct labor to jobs as follows.

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 is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)

(2)

(3)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

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			$