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Sunland Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job

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Sunland 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 $24,200, direct labor $14,520, and manufacturing overhead $19,360. As of January 1. Job 49 had been completed at a cost of $108,900 and was part of finished goods inventory. There was a $18.150 balance in the Raw Materials Inventory account. During the month of January, Sunland 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 $147,620 and $191,180, respectively. The following additional events occurred during the month. Purchased additional raw materials of $108,900 on account 2. Incurred factory labor costs of $84,700. Of this amount $19,360 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $20,570; indirect labor $24.200; depreciation expense on equipment $14,520; and various other manufacturing overhead costs on account $19,360 Assigned direct materials and direct labor to jobs as follows. 1. 3. 4. Job No. 50 51 52 Direct Materials $12,100 47.190 36,300 Direct Labor $6,050 30,250 24,200 (a) Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Sunland Company estimates total manufacturing overhead costs of $1,016,400, direct labor costs of $847,000, and direct labor hours of 24.200 for the year. Predetermined overhead rate 120 %6 (c) 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 (2) (3) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit

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