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 $22,400, direct labor $13,440, and manufacturing overhead $17,920. As of January 1, Job 49 had been completed at a cost of $100,800 and was part of finished goods inventory. There was a $16,800 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 $136,640 and $176,960, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $100,800 on account. 2. Incurred factory labor costs of $78,400. Of this amount $17,920 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $19,040; indirect labor $22,400; depreciation expense on equipment $13,440; and various other manufacturing overhead costs on account $17,920. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $11,200 $5,600 51 43,680 28,000 52 33,600 22,400 (A) Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $enter a dollar amount $enter a dollar amount $enter a dollar amount Jan. enter a dollar amount enter a dollar amount enter a dollar amount $enter a total of the two previous amounts $enter a total of the two previous amounts $enter a total of the two previous amounts Cost of completed job Direct materials $enter a dollar amount Direct labor enter a dollar amount Manufacturing overhead enter a dollar amount Total cost $enter a total of the three previous amounts Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a total amount $enter a total amount $enter a total amount Cost of completed job Direct materials $enter a dollar amount Direct labor enter a dollar amount Manufacturing overhead enter a dollar amount Total cost $enter a total of the three previous amounts Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $enter a dollar amount $enter a dollar amount $enter a dollar amount (B) Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (C) Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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 $22,400, direct labor $13,440, and manufacturing overhead $17,920. As of January 1, Job 49 had been completed at a cost of $100,800 and was part of finished goods inventory. There was a $16,800 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 $136,640 and $176,960, respectively. The following additional events occurred during the month.
| 1. | Purchased additional raw materials of $100,800 on account. | |
| 2. | Incurred |
|
| 3. | Incurred manufacturing overhead costs as follows: indirect materials $19,040; indirect labor $22,400; |
|
| 4. | Assigned direct materials and direct labor to jobs as follows. |
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Job No.
|
Direct Materials
|
Direct Labor
|
||
|---|---|---|---|---|
| 50 | $11,200 | $5,600 | ||
| 51 | 43,680 | 28,000 | ||
| 52 | 33,600 | 22,400 |
(A) Open
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Job No. 50
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|---|---|---|---|---|---|---|
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Date
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Direct Materials
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Direct Labor
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Manufacturing Overhead
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| Beg. |
$enter a dollar amount
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$enter a dollar amount
|
$enter a dollar amount
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|||
| Jan. | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
|
$enter a total of the two previous amounts
|
$enter a total of the two previous amounts
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$enter a total of the two previous amounts
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||||
| Cost of completed job | ||||||
| Direct materials |
$enter a dollar amount
|
|||||
| Direct labor |
enter a dollar amount
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|||||
| Manufacturing overhead | enter a dollar amount | |||||
| Total cost |
$enter a total of the three previous amounts
|
|
Job No. 51
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|---|---|---|---|---|---|---|
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Date
|
Direct Materials
|
Direct Labor
|
Manufacturing Overhead
|
|||
| Jan. |
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
|||
|
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
||||
| Cost of completed job | ||||||
| Direct materials |
$enter a dollar amount
|
|||||
| Direct labor |
enter a dollar amount
|
|||||
| Manufacturing overhead | enter a dollar amount | |||||
| Total cost |
$enter a total of the three previous amounts
|
|
Job No. 52
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||||||
|---|---|---|---|---|---|---|
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Date
|
Direct Materials
|
Direct Labor
|
Manufacturing Overhead
|
|||
| Jan. | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
(B) Prepare the
(C) Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
I NEED A-C ANSWERED DO NOT NOT ANSWER ANY ASPECT OF A-C!!!
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