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. Purchased additional raw materials of $91,800 on account. 2. Incurred factory labor costs of $71,400. Of this amount $16,320 related to employer payroll taxes. 3. 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 Direct Job Direct No. Materials Labor 50 $10,200 $5,100 51 39,780 25,500 52 30,600 20,400 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 % SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM 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) (2) (3) 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 T XT LINK TO XT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM 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 Materia ls Direct Labor Manufacturing Overhead Beg. Jan $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Direct Materials Direct Labor Manufacturing Overhead Date Jan $ $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT VIE NIHEARPO 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 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TXT LINK TO TXT LINK TO TXT LINK TO TEXT VIDEO: SIMILAR PROBLEM 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) (To record sale of jobs) (2) (To record cost of jobs) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK T T LINK TO TEXT LINK TO TXT LINK T XT 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 $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK T T LINK TO TEXT LINK TO TEXT LINK T XT VIDEO: SIMILAR PROBLEM What is the amount of over- or underapplied overhead? Manufacturing Overhead Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO XT LINK TO TEXT LINK TO TEXT LINK TO TXT LINK TO XT VIDEO: SIMILAR
