Question

Problem 2-1A (Video) Lott Company uses a job order cost system and applies overhead to production...

Problem 2-1A (Video)

Lott 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 $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account.

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 $125,660 and $162,740, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $92,700 on account.
2. Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4. Assigned direct materials and direct labor to jobs as follows.

Job No.

Direct Materials

Direct Labor

50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $865,200, direct labor costs of $721,000, and direct labor hours of 20,600 for the year.
Predetermined overhead rate

%

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

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)

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

1.

Predetermined overhead rate = $865,200 / $721,000 * 100 = 120%

2.

Account title and Explanation Debit Credit
1 Raw material inventory $92,700
Accounts payable $92,700
2 Factory labor $72,100
Factory wages payable $55,620
Employer payroll taxes 16,480
3 Manufacturing overhead $66,950
Raw material inventory $17,510
Factory labor 20,600
Accumulated depreciation-Equipment 12,360
Accounts payable 16,480
Add a comment
Know the answer?
Add Answer to:
Problem 2-1A (Video) Lott Company uses a job order cost system and applies overhead to production...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Problem 2-1A (Video) Latt Company uses a job order cost system and applies overhead to production...

    Problem 2-1A (Video) Latt Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Jab 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labar $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been carnpleted at a cost of $92,700 and was part of finished goods inventory. There...

  • Problem 2-1A (Video) Lott Company uses a job order cost system and applies overhead to production...

    Problem 2-1A (Video) Lott 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 $21,800, direct labor $13,080, and manufacturing overhead $17,440. As of January 1, Job 49 had been completed at a cost of $98,100 and was part of finished goods inventory. There...

  • Lott company uses a Problem 2-1A (Video) Lott Company uses a job order cost system and...

    Lott company uses a Problem 2-1A (Video) Lott 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 $22,000, direct labor $13,200, and manufacturing overhead $17,600. As of January 1, Job 49 had been completed at a cost of $99,000 and was part of...

  • Lott Company uses a job order cost system and applies overhead to production on the basis...

    Lott 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 $21,800, direct labor $13,080, and manufacturing overhead $17,440. As of January 1, Job 49 had been completed at a cost of $98,100 and was part of finished goods inventory. There was a $16,350...

  • P15-1A: Lott Company uses a job order cost system and applies overhead to production on the...

    P15-1A: Lott 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 $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a...

  • Lott Company uses a job order cost system and applies overhead to production on the basis...

    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 to January 1 on this job were as follows: direct materials $23,200, direct labor $13,920, and manufacturing overhead S18,560. As of January 1, Job No. 49 had been completed at a cost of S104,400 and was part of finished goods inventory. There was...

  • Problem 2-1A Lott Company uses a job order cost system and applies overhead to production on...

    Problem 2-1A 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 to January 1 on this job were as follows: direct materials $20,200, direct labor $12,120, and manufacturing overhead $16,160. As of January 1, Job No. 49 had been completed at a cost of $90,900 and was part of finished goods inventory....

  • Prepare the journal entries to record the sale of any job(s) during the month.

    Cullumber 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 $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the...

  • Lott Company uses a job order cost system and applies overhead to production on the basis...

    Lott 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 $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400...

  • Lott Company uses a job order cost system and applies overhead to production on the basis...

    Lott 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 $21,600, direct labor $12,960, and manufacturing overhead $17,280. As of January 1, Job 49 had been completed at a cost of $97,200 and was part of finished goods inventory. There was a $16,200...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT