Question

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 $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, 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 $147,620 and $191,180, respectively. The following additional events occurred during the month.

1.		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.
3.		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.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,100		$6,050
51		47,190		30,250
52		36,300		24,200

Part 1

Incorrect answer iconYour answer is incorrect.

Calculate the predetermined overhead rate for 2020, assuming Lott 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

enter the Predetermined overhead rate in percentages

%

Part 2

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

Part 3

Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit

Part 4

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary.

Job No. 50
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Beg.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Jan.		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total of the two previous amounts		$enter a total of the two previous amounts		$enter a total of the two previous amounts
Cost of completed job
Direct materials						$enter a dollar amount
Direct labor						enter a dollar amount
Manufacturing overhead						enter a dollar amount
Total cost						$enter a total of the three previous amounts

Job No. 51
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount
Cost of completed job
Direct materials						$enter a dollar amount
Direct labor						enter a dollar amount
Manufacturing overhead						enter a dollar amount
Total cost						$enter a total of the three previous amounts

Job No. 52
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Part 5

Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	enter an account title to record sale of jobs	enter a debit amount	enter a credit amount
	enter an account title to record sale of jobs	enter a debit amount	enter a credit amount
	(To record sale of jobs)
(2)	enter an account title to record cost of jobs	enter a debit amount	enter a credit amount
	enter an account title to record cost of jobs	enter a debit amount	enter a credit amount
	(To record cost of jobs)

Part 7

What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?

Finished Goods Inventory		$enter a dollar amount		select the jobs                                                                      Job No. 50Job No. 51Job No. 52Jobs 50 and 51Jobs 51 and 52Jobs 50 and 52

Part 8

What is the amount of over- or underapplied overhead?

Manufacturing Overhead		$enter a dollar amount		select a type of overhead                                                                      OverappliedUnderapplied

Answer 1

Required PART 1 Manufacturing on predertrmined oveshead Rate Con Direct Labour Cost basis) Direct Labour last 10 16 400 X100 847 Ovo 120%

Date PART-2 particular Amount Amount 8u7oo 19360 2 65340 factory labour the factory parysoll wage tances hi factory wages payable Ate (Bring Labour cost incured) Manufacturing overhead Ale Indirect Material the Indirect labour the Accumulated depreciation All Account peryable All 78380 205to 3 20 200 14250 19360

PART - Journal Entry of tinished goods Date Debit Credit 192120 Account Title Cost of goods sold I the Finished Goods All. ( 108900 + 83220) (ug+50) 192120 (Being Jobuo and so finished goods to coms.) frio: Balance of fininished goods in Job 51 = $ 113 7UO ULT
ALL THE AMOUNT IS IN $

THANK YOU