Instructions(a) Calculate the predetermined overhead rate for 2017, assuming Lott Company esti-mates total manufacturing overhead costs of $840,000, direct labor costs of $700,000,and direct labor hours of 20,000 for the year.(b) Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the jobcost sheet for Job 50.(c) Prepare the journal entries to record the purchase of raw materials, the factory laborcosts incurred, and the manufacturing overhead costs incurred during the month ofJanuary.(d) Prepare the journal entries to record the assignment of direct materials, direct labor,and manufacturing overhead costs to production. In assigning manufacturing over-head costs, use the overhead rate calculated in (a). Post all costs to the job cost sheetsas necessary.(e) Total the job cost sheets for any job(s) completed during the month. Prepare the jour-nal entry (or entries) to record the completion of any job(s) during the month.(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.(g) What is the balance in the Finished Goods Inventory account at the end of the month?What does this balance consist of?(h) What is the amount of over- or underapplied overhead?(e) Job 50, $69,000Job 51, $94,000 P2-1A Lott Company uses a job order cost system and applies overhead to production onthe basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. Thecosts incurred prior to January 1 on this job were as follows: direct materials $20,000,direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 hadbeen completed at a cost of $90,000 and was part of finished goods inventory. There was a$15,000 balance in the Raw Materials Inventory account.During the month of January, Lott Company began production on Jobs 51 and 52, andcompleted Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.1. Purchased additional raw materials of $90,000 on account.2. Incurred factory labor costs of $70,000. Of this amount $16,000 related to employerpayroll taxes.3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirectlabor $20,000, depreciation expense on equipment $12,000, and various other manu-facturing overhead costs on account $16,000.4. Assigned direct materials and direct labor to jobs as follows.Job No.505152Direct Materials$10,00039,00030,000Direct Labor$ 5,00025,00020,000

Name: Instructions(a) Calculate the predetermined overhead rate for 2017, a
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Instructions(a) Calculate the predetermined overhead rate for 2017, assuming Lott Company esti-mates total manufacturing overhead costs of $840,000, direct labor costs of $700,000,and direct labor hours of 20,000 for the year.(b) Open job cost sheet