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 $20.400, 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. 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. Direct Labor $5,100 Direct Materials $10,200 39,780 30,600 25,500 20,400 Your answer is incorrect. Try again. 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. Predetermined overhead rate CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PUNTER VERSION 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.) BACK NEXT No. Account Titles and Explanation (1) Raw Materials Inventory Accounts Payable 91,800 (2) Factory Labor | Employer Payroll Taxes Payable s Payable Factory Wages Payable L T T (3) Manufacturing Overhead L JL16320 55,090 66,300 I 17340 20,400 Raw Materials Inventory T Factory Labor 2.240 Accumulated Depreciation Equipment T 16,320 Accounts Payable CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION RACE 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 invented when amount is entered. Do not indent mentally) No. Account Titles and Explanation Debat Credit CALCULATOR MESSAGE MY TNSTRUCTOR FULL SCREEN PRINTER VERSE 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. Cost of completed Job Direct materials Direct labor Manufacturing overhead Total cost CALCL Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. I MI Ull 1xA IIIIIIIII I IIIIIII- II III lllllllll IllIIlI - Ull III A XI ll IlIIIII III III I MUP SUM lllll II Cost of completed job Direct materials Direct labor . Manufacturing overhead Total cost O Job No. 52 Date Direct Materials . Direct La Manufacturing Overhead XS il IT TO T L rch Ich TE 1 CALCULATO Prepare the journal entry to record the completion of any job(s) during the month. (Credit account tita manually.) Account Titles and Explanation TRENIER Debit Credit - SE XX LJ LJU 1 l lllll ll lllllll llllllll IIIIIII | 1/ llllllllll llllllll llllllll LIL Il Il 1 l SHOW LIST OF ACCOUNTS x Your answer is incorrect. Try again. Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are manually.) - No. Account Titles and Explanation Debit Credit (1) - llll Olllllll Hllllllllllll llllllllll l (To record sale of jobs) - Il x Your answer is incorrect. Try again. 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 SHOW LIST OF ACCOUNTS El your answer is incorrect. Try again. What is the amount of over- or underapplied overhead? Manufacturing Overhead