Question 2 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 in process. The costs incurred prior $107 100 and was nart of finished goods inventory. There at17.850 halance in the Raw Materials Inventory accounu40, As of January 1, Job No. 49 had been completed at a cost of 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 $145,180 and $188,020, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $107,100 on account. Incurred factory labor costs of $83,300. Of this amount $19,040 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $20,230; indirect labor $23,800; depreciation expense on equipment $14,280; and various other manufacturing overhead costs on account $19,040 Assigned direct materials and direct labor to jobs as follows 4 Job No. Direct Materials Direct Labor 50 $11,900 $5,950 51 46,410 29,750 52 35.700 23,800 Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $999,600, direct labor costs of $833,000, and direct labor hours of 23,800 for the year. (Round answer t the nearest whole percent, e.g. 25 %.) Predetermined overhead rate % 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 eg. $ $ Jan $ $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan $ $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ Job No. 52 Direct Materials Date Direct Labor Manufacturing Overhead Jan 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 entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) (3) SHOW LIST OF ACCOUNTSS LINK TO TEXT LINK TO LINK TEXT LINK TO T VIDEO: STMLAR 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 Credit Account Titles and Explanation 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 TE LINK TO TEX LINK TO TEX LINK TO T VIDEO: SIMILAR PROBLEM What is the balance in the Finished Goods Inventory account at the end f the month? What does this balance consist of? Finished Goods Inventory t
