*Problem 20-01A a, c, d1, b, d2, e-h (Part Level Submission) (Video) Crane 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 $20,400, direct labor $12,240, and manufacturing overhead $16,320. As of January 1, Job 49 had been completed at a cost of $91,800 and was part of finished goods inventory. There was a $15,300 balance in the Raw Materials Inventory account. During the month of January, Crane 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 $124,440 and $161,160, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $91,800 on account. Incurred factory labor costs of $71,400. Of this amount $16,320 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,340; indirect labor $20,400; depreciation expense on equipment $12,240; and various other manufacturing overhead costs on account $16,320. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials $10,200 39,780 30,600 Direct Labor $5,100 25,500 20,400 *(a) Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Crane Company estimates total manufacturing overhead costs of $856,800, direct labor costs of $714,000, and direct labor hours of 20,400 for the year. Predetermined overhead rate 120% Attempts: 2 of 5 used *(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 (1) Raw Materials Inventory Accounts Payable (2) Factory Labor Factory Wages Payable Debit Credit 191800 5 591800 714005 55080 116320 17663001 116320 112240 17340 TEmployer Payroll Taxes Payable (3) Manufacturing Overhead Accounts Payable TAccumulated Depreciation Equipment Raw Materials Inventory Factory Labor 20400) Attempts: 2 of 5 used *(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 80580 1 Raw Materials Inventory 30580 (2) Work in Process Inventory 1510000 Factory Labor _ $1000 Work in Process Inventory 5161200 Manufacturing Overhead 151200 Attempts: 2 of 5 used *(b) & (d2) 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 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Direct Labor Manufacturing Overhead Direct Materials 5120400 Beg. 12240 Jan. 10200 15100 $17340 $116320 16120 1522440 $30600 Cost of completed job Direct materials 30600 Direct labor 17340 22440 Manufacturing overhead Total cost 1570380 Job No. 51 Date Manufacturing Overhead Direct Materials 539780 Direct Labor 525500 Jan. 197805 25500 Cost of completed job Direct materials 159780 Direct labor Manufacturing overhead Total cost Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead 5110600 Jan. $20400 Attempts: 2 of 5 used