No. Account Titles and Explanation 3 (1) Accounts Receivable Sales Revenue (To record sale of jobs) Accounts Receivable Sales Revenue (To record cost of jobs) Debit 344400 Credit 344400
No. Account Titles and Explanation 3 (1) Accounts Receivable Sales Revenue (To record sale of jobs) Accounts Receivable Sales Revenue (To record cost of jobs) Debit 344400 Credit 344400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do not give answer in image
![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 $24,600, direct
labor $14,760, and manufacturing overhead $19,680. As of January 1, Job 49 had been completed at a cost of $110,700 and was part
of finished goods inventory. There was a $18,450 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 $150,060 and $194,340, respectively. The following additional events occurred during the
month.
1.
2.
3.
4.
Job No. Direct Materials
$12,300
50
51
Purchased additional raw materials of $110,700 on account.
Incurred factory labor costs of $86,100. Of this amount $19,680 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $20,910; indirect labor $24,600; depreciation expense
on equipment $14,760; and various other manufacturing overhead costs on account $19,680.
Assigned direct materials and direct labor to jobs as follows.
52
47,970
36,900
Direct Labor
$6,150
30,750
24,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec20c2bc-5613-42f1-b46c-feb8a3b0649e%2F6c7d3fa5-c897-48e4-8fc5-2445bdda94d7%2Fqcyuzj_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $24,600, direct
labor $14,760, and manufacturing overhead $19,680. As of January 1, Job 49 had been completed at a cost of $110,700 and was part
of finished goods inventory. There was a $18,450 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 $150,060 and $194,340, respectively. The following additional events occurred during the
month.
1.
2.
3.
4.
Job No. Direct Materials
$12,300
50
51
Purchased additional raw materials of $110,700 on account.
Incurred factory labor costs of $86,100. Of this amount $19,680 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $20,910; indirect labor $24,600; depreciation expense
on equipment $14,760; and various other manufacturing overhead costs on account $19,680.
Assigned direct materials and direct labor to jobs as follows.
52
47,970
36,900
Direct Labor
$6,150
30,750
24,600
![No. Account Titles and Explanation
(1) Accounts Receivable
â
Sales Revenue
(To record sale of jobs)
Accounts Receivable
Sales Revenue
(To record cost of jobs)
Debit
344400
Credit
344400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec20c2bc-5613-42f1-b46c-feb8a3b0649e%2F6c7d3fa5-c897-48e4-8fc5-2445bdda94d7%2Fmubilyd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:No. Account Titles and Explanation
(1) Accounts Receivable
â
Sales Revenue
(To record sale of jobs)
Accounts Receivable
Sales Revenue
(To record cost of jobs)
Debit
344400
Credit
344400
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