Question

lott Com any i SR; A nh Ontercost sys enn and ap iles ถ Grhead to producton on the bask of dirart lahar ro ts. n 1anuary 1 2017 en Nn 5n was the only b ǐn pro se The cnsts incurred priar o נanuary 1 on rls ob ere as tolla s: direct materials sn nn direct lab t $12 nan and man tach ng avertead $16,000. s of anuary 1, ob No. 49 had been completed at a ost o 90,000 and was pert ef finished goods inentory. There nas $15,00 balanoe in the aw Materials Enventory account. During the month of Januar , Lott Company bepan production on Jcbs 5l snd ฐ2 and competed Jobs ฐ0 and 31 Jcbc 40 อ d SO erc also sold on account during the month for $122,000 and $158 000 rospcct vely. The follo 1 Purchased additional raw materials cr $90,000 on account. 2. Incured factory labor csts o $70,000. Or tis amcunt s15,000 related to employer payrell tazes. 4, Assigned ป" ell materials dnd dired labu' lu jobs as rulluns. ng tional events occurred during the month materials 517,000; İndiect labu expense se on equipment $12, Job No Direct Materials Direct Labor

Answer 1

Journal entries:
No.	Accounts title and explanation				Debit	Credit
1	Raw material inventory				90000
	Accounts payable					90000
2	Factory Labouor				70000
	Wages payable					54000
	Payroll taxes payable					16000
3	Manufacturing Overheads				65000
	Raw material inventory					17000
	Factory Labour					20000
	Accumulated depreciation					12000
	Accounts payable					16000
4	Work in process Inventory				189000
	Raw material inventory (10000+39000+30000)					79000
	Factory Labour (5000+25000+20000)					50000
	Manufacturing overheads (50000*120%)					60000
Note: Pre-determined OH based on DLC hs been computed as 120% of DLC in last part solved.