Question

Problem 15-1A 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 80, and manufacturing overhead $17,440. As of January 1, Job No. 49 had been completed at a cost of $98,100 and was part of finished goods inventory. There was a 16 50 balancein the dditional auents occurred durina the mon egan 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 $132.980 and $172.220, respectively. The folowing Purchased additional raw materials of $98,100 on account. Incunted abry labor costs or terials $18.530-n a1 800; deprecation expense on equipment $13,080; and various other manufacturing overhead costs o account $17,440. Assigned direct materials and direct labor to jobs follows. 4. Direct Materials Job No. Direct Labor 10 32.700 21.800 52 Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50. Job No. 50 Direct Materials Direct Labor Manufacturing Overhead Date Beg 17,440 21800 13,080 Jan 5450 10900 6540 32700 18530 23980 Cost of completed job Direct materials 32,700 Direct labor 18,530 Manufacturing overhead 23980 Total cost 75,210 Job No. 51 Direct Materials Direct Labor Manufacturing Overhead Date Jan 32700 42,510 27,250 $ 27,250 32700 42,510 Cost of completed job Direct materials 42,510 Direct labor 27,250 Manufacturing overhead 32700 Total cost 102460 Job No. 52 Direct Materials Direct Labor Manufacturing Overhead Date Jan 21,800 32700 26160 Your answer is partially correct. Try again ntries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do t darlaat arally Account Titles and Explanation Debit Credit No (1) TRaw Materials Inventory 98.100 Accounts Receivable 98,100 (2) Factory Labor 76,300 Employer Payrall Taxes 17,440 TFactory Wages Payable Imanufacturing overhead Raw Materials Invento 18,530 Factory Labor 21800 Accumulated Depreciat 13,000 Accounts Pavable 17,440 SHOW LIST OF AССOUMTS LUNE TO TXT LaINK TO TEXT LINK TO TEXT Цик то тект Prepare the journal entries to record the assignment of direct materials, direct labor, and 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 (1) Work in Process Inventor TRaw Materials Inventory (2) Work in Process Inventor Factory Labor (3) Work in Process Inventor Manufacturing Overhead SHOW LIST FACCOUNTS INK TO TEXI 1INK TO TEKT ик то тЕхТ LINK TO TEKT Your answer is partially correct. Try again. entered, Do not indent manually, Total the icb cost sheets for any jobís) completed during the month, Prenare the iqumal entry to record the completion of any iohís) during the manth. (Credit account titles are automatically indented when amount Account Titles and Explanation Debit Credit Finished Goods Inventory Wark in Pracess Inventar SHOW LIST OF ACCOUNTS LINK ОТЕХT пнк то ТЕт Iик то ТЕХТ ик то ТЕXТ Your answer is partially correct. Try again. Prepare the jounal 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)TAccounts Receivable Sales Revenue (To record sale of jobs) x (215 TCost of Goods Sold TFinished Goods Inventory (To record cost of jobs) SHOW LIST OF ACCOUNTS THK тO ТЕХТ LINK TO TEXT IINK TO TEXT LTNK TO TEXT Your answer is partially correct. Try again 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 Job No. 51 SHOW LIST OF ACCOUNTS LINK TO TEXT INк то ТЕХТ LINK TO TEYT INK тO TТЕХТ Your answer is partiallycorrect. Try again What is the amount of over- or underapplied overhead? Manufacturing Overhead Underapplied

Answer 1

Part A)

1)For purchase of raw material on account ,credit Accounts payable

2)credit Factory wages payable with 76300-17440=58860

3)Debit manufacturing overhead with 18530+21800+13080+17440=70850

Part B)

No.	Account title	Debit	credit
1	Work in process Inventory	86110
	Raw material inventory (10900+42510+32700)		86110
2	Work in process Inventory	54500
	Factory labor (5450+27250+21800)		54500
3	Work in process Inventory	65400
	manufacturing overhead   (54500*120%)		65400

Part C)

No.	Account title	Debit	credit
	Finished goods inventory	177670
	Work in process Inventory   (75210+102460)		177670

Part D)

No	Account title	Debit	credit
1	Accounts receivable	305200
	sales revenue (132980Job 49+172220Job 50)		305200
2	cost of goods sold	173310
	Finished goods inventory (98100 Job 49+ 75210 Job50)		173310

Finished goods inventory =Job 51 =102460

Manufacturing overhead is under-applied by Actual overhead -Applied overhead

                 = 70850-65400

                 = $ 5450