Lott CompanyLott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs.On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were asfollows: direct materials $20,000, direct labor $12,000, and manufacturing overhead S16,000. As of January 1, Job49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balancein 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 $122,000 and $158,000, respectively.The following additional events occurred during the month.• Purchased additional raw materials of $90,000 on account.Requisitioned raw materials for jobs:Job No.Amount50$10,000$39,0005152$30,000Incurred factory labor costs of $70,000. Of this amount, $16,000 related to employer payroll taxes.Use the data below to assign the labor costs.Job No.Amount$ 5,0005051$25,00052$20,000General use$20,000Incurred additional manufacturing overhead costs as follows: indirect materials $17,000,depreciation expense on equipment $12,000, and various other manufacturing overhead costs onaccount $16,000.• Applied the overhead.Instructions(a) Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costsof $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 job cost sheet for Job 50.(c) Prepare the journal entries for the aforementioned events.(d) Post all costs to the job cost sheets as necessary.(e) Prepare the journal entry (or entries) to record the completion of any job(s) đuring the month.() 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?

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Asked Jan 23, 2020
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Lott Company
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 50 was the only job in process. The costs incurred prior to January 1 on this job were as
follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead S16,000. As of January 1, Job
49 had been 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, and completed 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.
• Purchased additional raw materials of $90,000 on account.
Requisitioned raw materials for jobs:
Job No.
Amount
50
$10,000
$39,000
51
52
$30,000
Incurred factory labor costs of $70,000. Of this amount, $16,000 related to employer payroll taxes.
Use the data below to assign the labor costs.
Job No.
Amount
$ 5,000
50
51
$25,000
52
$20,000
General use
$20,000
Incurred additional manufacturing overhead costs as follows: indirect materials $17,000,
depreciation expense on equipment $12,000, and various other manufacturing overhead costs on
account $16,000.
• Applied the overhead.
Instructions
(a) Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates 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 job cost sheet for Job 50.
(c) Prepare the journal entries for the aforementioned events.
(d) Post all costs to the job cost sheets as necessary.
(e) Prepare the journal entry (or entries) to record the completion of any job(s) đuring the month.
() 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?
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Lott Company 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 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead S16,000. As of January 1, Job 49 had been 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, and completed 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. • Purchased additional raw materials of $90,000 on account. Requisitioned raw materials for jobs: Job No. Amount 50 $10,000 $39,000 51 52 $30,000 Incurred factory labor costs of $70,000. Of this amount, $16,000 related to employer payroll taxes. Use the data below to assign the labor costs. Job No. Amount $ 5,000 50 51 $25,000 52 $20,000 General use $20,000 Incurred additional manufacturing overhead costs as follows: indirect materials $17,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account $16,000. • Applied the overhead. Instructions (a) Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates 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 job cost sheet for Job 50. (c) Prepare the journal entries for the aforementioned events. (d) Post all costs to the job cost sheets as necessary. (e) Prepare the journal entry (or entries) to record the completion of any job(s) đuring the month. () 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?

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Expert Answer

Step 1

As per authoring guideline the three sub-parts of question are answered. Respost the question specifying any three sub-part numbers for answers.

Step 2

a. Compute predetermined overhead rate for 2017 as shown below:

Accounting homework question answer, step 2, image 1
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Step 3

C. Prepare journal entries for the event...

Accounting homework question answer, step 3, image 1
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