Lott Company uses a job order cost system and applies overheadto production on the basis of direct labor costs. On January 1,2017, Job No. 50 was the only job in process. The costs incurredprior to January 1 on this job were as follows: direct materials $22,400 , direct labor $ 13,440 , and manufacturing overhead $17,920 . As of January 1, Job No. 49 had been completed at a costof $ 100,800 and was part of finished goods inventory. There was a$ 16,800 balance in the Raw Materials Inventory account. During themonth of January, Lott Company began production on Jobs 51 and 52,and completed Jobs 50 and 51. Jobs 49 and 50 were also sold onaccount during the month for $ 136,640 and $ 176,960 ,respectively. The following additional events occurred during themonth. 1. Purchased additional raw materials of $ 100,800 onaccount. 2. Incurred factory labor costs of $ 78,400 . Of thisamount $ 17,920 related to employer payroll taxes. 3. Incurredmanufacturing overhead costs as follows: indirect materials $19,040 ; indirect labor $ 22,400 ; depreciation expense onequipment $ 13,440 ; and various other manufacturing overhead costson account $ 17,920 . 4. Assigned direct materials and direct laborto jobs as follows. Job No. Direct Materials Direct Labor 50 $11,200 $ 5,600 51 43,680 28,000 52 33,600 22,400 Calculate thepredetermined overhead rate for 2017, assuming Lott Companyestimates total manufacturing overhead costs of $940,800, directlabor costs of $784,000, and direct labor hours of 22,400 for theyear. (Round answer to 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 JobNo. 50. Job No. 50 Date Direct Materials Direct Labor ManufacturingOverhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Directmaterials $ Direct labor Manufacturing overhead Total cost $ JobNo. 51 Date Direct Materials Direct Labor Manufacturing OverheadJan. $ $ $ $ $ $ Cost of completed job Direct materials $ Directlabor Manufacturing overhead Total cost $ Job No. 52 Date DirectMaterials Direct Labor Manufacturing Overhead Jan. $ $ $ Preparethe journal entries to record the purchase of raw materials, thefactory labor costs incurred, and the manufacturing overhead costsincurred during the month of January. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in (a). (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Total the job cost sheets for any job(s) completed during themonth. Prepare the journal entry to record the completion of anyjob(s) during the month. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.) AccountTitles and Explanation Debit Credit Prepare the journal entries torecord the sale of any job(s) during the month. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.) No. Account Titles and Explanation Debit Credit(1) (To record sale of jobs) (2) (To record cost of jobs) What isthe balance in the Finished Goods Inventory account at the end ofthe month? What does this balance consist of? Finished GoodsInventory $ What is the amount of over- or underapplied overhead?Manufacturing Overhead $ Question Attempts: 0 of 15 used Save forlater Submit Answer
Lott Company uses a job order cost system and applies overheadto production on the basis of direct labor costs. On January 1,2017, Job No. 50 was the only job in process. The costs incurredprior to January 1 on this job were as follows: direct materials $22,400 , direct labor $ 13,440 , and manufacturing overhead $17,920 . As of January 1, Job No. 49 had been completed at a costof $ 100,800 and was part of finished goods inventory. There was a$ 16,800 balance in the Raw Materials Inventory account. During themonth of January, Lott Company began production on Jobs 51 and 52,and completed Jobs 50 and 51. Jobs 49 and 50 were also sold onaccount during the month for $ 136,640 and $ 176,960 ,respectively. The following additional events occurred during themonth. 1. Purchased additional raw materials of $ 100,800 onaccount. 2. Incurred factory labor costs of $ 78,400 . Of thisamount $ 17,920 related to employer payroll taxes. 3. Incurredmanufacturing overhead costs as follows: indirect materials $19,040 ; indirect labor $ 22,400 ; depreciation expense onequipment $ 13,440 ; and various other manufacturing overhead costson account $ 17,920 . 4. Assigned direct materials and direct laborto jobs as follows. Job No. Direct Materials Direct Labor 50 $11,200 $ 5,600 51 43,680 28,000 52 33,600 22,400 Calculate thepredetermined overhead rate for 2017, assuming Lott Companyestimates total manufacturing overhead costs of $940,800, directlabor costs of $784,000, and direct labor hours of 22,400 for theyear. (Round answer to 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 JobNo. 50. Job No. 50 Date Direct Materials Direct Labor ManufacturingOverhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Directmaterials $ Direct labor Manufacturing overhead Total cost $ JobNo. 51 Date Direct Materials Direct Labor Manufacturing OverheadJan. $ $ $ $ $ $ Cost of completed job Direct materials $ Directlabor Manufacturing overhead Total cost $ Job No. 52 Date DirectMaterials Direct Labor Manufacturing Overhead Jan. $ $ $ Preparethe journal entries to record the purchase of raw materials, thefactory labor costs incurred, and the manufacturing overhead costsincurred during the month of January. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in (a). (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Total the job cost sheets for any job(s) completed during themonth. Prepare the journal entry to record the completion of anyjob(s) during the month. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.) AccountTitles and Explanation Debit Credit Prepare the journal entries torecord the sale of any job(s) during the month. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.) No. Account Titles and Explanation Debit Credit(1) (To record sale of jobs) (2) (To record cost of jobs) What isthe balance in the Finished Goods Inventory account at the end ofthe month? What does this balance consist of? Finished GoodsInventory $ What is the amount of over- or underapplied overhead?Manufacturing Overhead $ Question Attempts: 0 of 15 used Save forlater Submit Answer
