Waterway Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50was the onlyjob in process. The costs incurred prior to January 1 on thisjobwere as follows: direct materials $25,000, direct labor $15,000, and manufacturing overhead $20,000. As ofJanuary 1, Job 49 had been completed at a cost of $112,500 and was part of nished goods inventory. There was a $18,?50 balance in the Raw Materials Inventory account. During the month of January, Waterway 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 $ 152,500 and $19?,500, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $1 12,500 on account. 2. Incurred factory labor costs of $873,500. Ofthis amount $20,000 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $21,250; indirect labor $25,000; depreciation expense on equipment $15,000; and various other manufacturing overhead costs on account $20,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $12,500 $6,250 51 48,?50 31,250 52 3?,500 25,000 (a) Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Waterway Company estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $875,000, and direct labor hours of 25,000 for the year. Predetermined overhead rate 120 % eTextbook and Media List of Accounts Attempts: 1 of 5 used(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 (1) (2) (3) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit