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P15-1A Prepare entries in a job order cost system and job cost sheets (LO 2,3, 4,5,6), AP Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,2014, 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 S16,000. 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 S15,000 balance in the Raw Materials Inventory account. During the month of January, Degelman 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 S158,000 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 S70,000. 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 $19,000; 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 51 52 S10,000 39,000 30,000 S 5,000 25,000 20,000