Question

Lott Cum any uses a」ob urder cost systern and applies overhead to production on the basis o direct labor cuts. On January 1 2017, Job No 50 as the only JUO n process. The costs incurred pr r o January 1 on his job Were as follows: diet materials $22 400, direct labur 13,440 and manufacturing overhead $17,920 As of January 1, Job No. 49 had been cumpleted at cust uf $100,800 and was part uffinished ouds nventory. There was ฮ $16,900 balance in the Raw Materials Inventory account. During the month of1anuary, Lott Company bngan production an labs 51 and 52, and completed lobs 50 and 51. Jobs 49 and 50 were alsp sald on account during the month or 136,640 and $17ß.9ba, respectively The f llawing additional events occurr d dunng the mar h 1. Purchased additional raw materials of $100,800 on account. 2. Incurred factory labor custs of $78,400. Of this arnuunt梟17,920 related tu employer payroll taxes. 3. Incured manufacturing averhead costs as fallows: indirect materials $19,040; indirect lahor $22,40D; depreciation expense a equipment $13,440; and various ather manufacturing overhead casts cn account $17,920. 4. Assigned direct materials and direct labor to jobs as follows. Job No Direct Materials Direct Labor $5,G00 $11,200 43,680 33,600 51 22,400 Calculate the predetermined n erhead rate 25%.) 「2017, assuming ott Company estimates t ta manufacturing overhead costs af S 40,8D direct abar cnsts of $784 , and cirect ahor hours at 22,400 fr the y ar. Rarn answer a th" ne n st w d e percen o. Predetermined overhead rata

Answer 1

predetermined overhead rate
Estimated manufacturing overhead/total estimated direct labor costs
940800/784000
120.00%
job no 50
Date		Direct	direct	MOH
		materials	labor
beg.		22,400	13,440	17,920
Jan		11,200	5,600	6,720
		33,600	19,040	24,640
cost of completed job
Direct materials				33,600
direct labor				19,040
MOH				24,640
total cost				77,280
job no 51
Date		Direct	direct	MOH
		materials	labor
Jan		43,680	28,000	33,600
		43,680	28,000	33,600
cost of completed job
Direct materials				43,680
direct labor				28,000
MOH				33600
total cost				105,280
Job 52
Date		Direct	direct	MOH
		materials	labor
Jan		33,600	22,400	26,880
No	Account titles & Explanations				Debit	Credit
1)	Raw materials inventory				100,800
	Accounts payable					100,800
2)	Factory labor				78,400
	Factory wages payable					60,480
	employer payroll taxes payable					17,920
3)	manufacturing overhead				72,800
	raw materials inventory					19,040
	Factory labor					22,400
	Accumulated depreciation					13,440
	Accounts payable					17,920
No	Account titles & Explanations				Debit	Credit
1)	Work in process inventory				88,480
	Raw materials inventory					88,480
2)	work in process inventory				56,000
	Factory labor					53,000
3)	Work in process inventory				67200
	manufacturing overhead					67,200
	Account titles & Explanations				Debit	Credit
	finished goods inventory				182,560
	work in process inventory					182,560
	(job 50 +job 51 =
No	Account titles & Explanations				Debit	Credit
	Accounts receivable				313590
	sales	(136640+176950)				313,590
	(sales figure little blurry ,please change if required)
	cost of goods sold
	finished goods inventory				178,080
	(job 49+job 50)					178,080
finished goods inventory			105,280	Job No 51

manufacturing overhead			5,600	under applied