Question

Problem 15-1A (Part Level Submission) 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 No. 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 $16,000. As of January 1, Job No. 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. 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 employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $20,000; depreciation expense on equipment $12,000; and various other manufacturing overhead costs on account $16,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $10,000 $5,000 51 39,000 25,000 52 30,000 20,000 Collapse question part (a) Correct answer. Your answer is correct. 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. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate Entry field with correct answer % Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used Collapse question part (b) Partially correct answer. Your answer is partially correct. Try again. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Jan. Entry field with correct answer Entry field with correct answer Entry field with incorrect answer $Entry field with correct answer $Entry field with correct answer $Entry field with incorrect answer Cost of completed job Direct materials $Entry field with correct answer Direct labor Entry field with correct answer Manufacturing overhead Entry field with incorrect answer Total cost $Entry field with incorrect answer Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $Entry field with correct answer $Entry field with correct answer $Entry field with incorrect answer $Entry field with correct answer $Entry field with correct answer $Entry field with incorrect answer Cost of completed job Direct materials $Entry field with correct answer Direct labor Entry field with correct answer Manufacturing overhead Entry field with incorrect answer Total cost $Entry field with incorrect answer Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $Entry field with correct answer $Entry field with correct answer $Entry field with incorrect answer

Answer 1