Problem 20-01A a, c, d1, b, d2, e-h (Part Level Submission) (Video)

Blossom 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 $24,600, direct labor $14,760, and manufacturing overhead $19,680. As of January 1, Job 49 had been completed at a cost of $110,700 and was part of finished goods inventory. There was a $18,450 balance in the Raw Materials Inventory account. During the month of January, Blossom 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 $150,060 and $194,340, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $110,700 on account.
2.		Incurred factory labor costs of $86,100. Of this amount $19,680 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $20,910; indirect labor $24,600; depreciation expense on equipment $14,760; and various other manufacturing overhead costs on account $19,680.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,300		$6,150
51		47,970		30,750
52		36,900		24,600

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.

(c) Your answer is correct. Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 110,700 Accounts Payable 110,700 (2) Factory Labor 86,100 Factory Wages Payable 66420 Employer Payroll Taxes Payable 19,680 (3) Manufacturing Overhead 79950 Raw Materials Inventory 20,910 24,600 Factory Labor Accumulated Depreciation- Equipment 14,760 Accounts Payable 19,680 (d1) Your answer is correct. Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a).. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Work in Process Inventory 97170 Raw Materials Inventory 97170 (2) Work in Process Inventory 61500 Factory Labor 61500 (3) Work in Process Inventory 73800 Manufacturing Overhead 73800 (a) Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Blossom Company estimates total manufacturing overhead costs of $1,033,200, direct labor costs of $861,000, and direct labor hours of 24,600 for the year. Predetermined overhead rate 120% SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK T XT LINK T X LINK T X LINK TO TEXT LINK TO TEXT Job No. 50 Direct Materials Direct Labor Manufacturing Overhead Date eg. 24,600 14,760 19,680 Jan 12,300 6,150 Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost tA Job No. 51 Direct Materials Direct Labor Manufacturing Overhead Date Jan $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 52 Direct Materials Direct Labor Manufacturing Overhead Date Jan $ tA tA tA tA tA