Question

Question 1 Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, 1cb No. 50 was the only joo in process. The costs incurred prior to lanuary 1 on this job were as follows: direct materials $22.200, direct labor $13,320, and manufacturing overhead S17,760. As of January 1, Job No. 49 had been completed at a cost of $9,900 and was part of finished goods inventory. There was a $16,650 balance in the Raw Materials Inventory account. g 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 tor巿135,420 and $175,380, respectively, The following addit events occurred during the month 1 Purchased additional raw materials of $99,900 on account 2. Incurred factory labor costs of $77,700. Of this amount S17,760 related to employer payroll taxes. 3 Incurred manufacturing overhead costs as follows: indirect materials S18,870; Indirect labor $22,200: depreciation expense on equipment $13,30 ad various other manufacturnng overhead costs on account $17,750. 4. Assigned direct materials and direct labor to jobs as follows. oh No. Direct Materials Direct Labor 51 52 $11,100 43,290 33,300 S5,550 27,750 22,200

Answer 1

solution Job No. 50 Date Be Jan. Direct Materials Direct LaborManufacturing Overhead 22,200 13,320 17,760 6,660 Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost 33,300 18,870 24,420 76,590 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead 33,300 43,290 27,750 Cost of completed iob Direct materials Direct labor Manufacturing overhead Total cost 43,290 27,750 33,300 104,340 Job No. 51 Date Direct Materials Direct LaborManufacturing Overhead an. 33,300 22,200 26,640 Sheet636 Sheet637 Sheet638 Sheet639 Sheet 640 Sheet64 1 Sheet642 Sheet643 | Sheetб44 ENG 20:40

1Journal ent 3.Journal en No account title debit credit 99,900 account title finished goods inven work in debitcredit 180,930 No 1 raw material invento accounts payable 99,900 nvent 180,930 76590+104340 labor 77,700 roll taxes 17,760 59,940 4 Journal en No account title debit credit 310,800 wages payable 1 account receivable 3 manufacturing overhead 72,150 sales (135420+175380) 310,800 raw material invento labor 18,870 22,200 13,320 2 cost of accumulated depreciation acconts payable 176,490 17,760 finished s inven 176,490 99900+76590 2 Journal en No account title 1work in process inven debitcredit Balance in finished goods inventory 104 340Job No 51 87,690 raw material inventory 87,690 (11100+43290+33 manufacturing overhead: Incurred Applied Under applied 72,150 66,600 5,550 2 work in process inventory55,500 labor 55,500 3 work in process inven 66,600 manufacturing overhead 66,600 55500" 120% Sheet636Sheet37 Sheet538 Sheet639Sheet640 Sheet641Sheet42 Sheet643 Sheet644 ENG 20:40 US 24/02/2018