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Job No. Direct Materials Direct Labor SHOW LIST OF ACCOUNTS Job No. 50 Date Dire

ID: 2607763 • Letter: J

Question

Job No.

Direct Materials

Direct Labor

SHOW LIST OF ACCOUNTS

Job No. 50

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Job No. 51

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Job No. 52

Date

Direct Materials

Direct Labor

Manufacturing Overhead

SHOW LIST OF ACCOUNTS

No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

(3)

SHOW LIST OF ACCOUNTS

No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

(3)

SHOW LIST OF ACCOUNTS

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

SHOW LIST OF ACCOUNTS

SHOW LIST OF ACCOUNTS

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 $22,400, direct labor $13,440, and manufacturing overhead $17,920. As of January 1, Job No. 49 had been completed at a cost of $100,800 and was part of finished goods inventory. There was a $16,800 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 $136,640 and $176,960, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $100,800 on account. 2. Incurred factory labor costs of $78,400. Of this amount $17,920 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $19,040; indirect labor $22,400; depreciation expense on equipment $13,440; and various other manufacturing overhead costs on account $17,920. 4. Assigned direct materials and direct labor to jobs as follows.

Job No.

Direct Materials

Direct Labor

50 $11,200 $5,600 51 43,680 28,000 52 33,600 22,400

Explanation / Answer

Journal Entries

Journal entries for assignment of costs for production

Journal entry to record completion of Jobs during the month.

Journal entries to record sale of jobs:

Predetermined overhead rate 120% Estimated total manufacturing overhead costs 940800 Estimated direct labor costs 784000 Predetermined overhead rate 120% of direct labor cost
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