Marigold 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 $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account. During the month of January, Marigold 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 $125,660 and $162,740, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $92,700 on account.
2. Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
(a) Calculate the predetermined overhead rate for 2020, 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.
(b) Open job cost sheets for Jobs 50. 51. and 52. Enter the January 1 balances on the job cost sheet for Job 50.
(c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
(d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
(e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
(g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
(h) What is the amount of over- or underapplied overhead?

Marigold Company

a) Calculation of the predetermined overhead rate for 2020, assuming (Lott) Marigold 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.

Predetermined overhead rate, based on the direct labor costs:

= Total manufacturing overhead costs/direct labor costs

= $840,000/$700,000 = $1.20 per direct labor cost

Predetermined overhead rate, based on the direct labor hours:

= Total manufacturing overhead costs/direct labor hours

= $840,000/20,000 = $4.20 per direct labor hour

b) Job Cost Sheets

                                             Job 50        Job 51         Job 52

Beginning inventory          $49,440

Direct materials                    10,300       $40,170        $30,900

Direct labor                            5,150         25,750          20,600

Manufacturing overhead      6,180         30,900          24,720

Finished goods inventory $71,070      $96,820                      $76,220

c) Journal Entries:

i) Purchase of raw materials:

Debit Inventory $92,700

Credit Accounts Payable $92,700

To record the purchase of raw materials.

ii) Factory labor costs incurred:

Debit Factory labor costs $72,100

Credit Employer Payroll Taxes Expense $16,480

Credit Factory Salary and Wages $55,620

To record factory labor costs.

iii) Manufacturing overhead costs incurred:

Debit Manufacturing overhead $66,950

Credit Inventory for indirect materials $17,510

Credit Salaries & Wages $20,600

Credit Equipment Depreciation $12,360

Credit Accounts Payable $16,480

To record manufacturing overhead

d) Journal Entries:

Debit Job 50 $21,630

Credit Direct materials $10,300

Credit Direct labor $5,150

Credit Manufacturing overhead $6,180

To allocate manufacturing costs to job 50.

Debit Job 51 $96,820

Credit Direct materials $40,170

Credit Direct labor $25,750

Credit Manufacturing overhead $30,900

To allocate manufacturing costs to job 51.

Debit Job 52 $76,220

Credit Direct materials $30,900

Credit Direct labor $20,600

Credit Manufacturing overhead $24,720

To allocate manufacturing costs to job 52.

e) Journal Entries:

Debit Finished Goods Inventory $167,890

Credit Job 50 $71,070

Credit Job 51 $96,820

To record finished goods from Jobs 50 and 51

f) Journal Entries for Sale of Jobs:

Debit Accounts Receivable $288,400

Credit Sales Revenue $288,400

To record the sale of Jobs 49 and 50 on account.

Debit Cost of goods sold $163,770

Credit Finished goods inventory $163,770

To record the cost of Jobs 49 and 50 sold.

g) Balance in Finished Goods Inventory account:

Beginning balance: Job 49 $92,700

Debit Job 50                         $71,070

Debit Job 51                        $96,820

less: cost of jobs sold        $163,770

Ending balance: Job 51      $96,820

The balance consists of Job 51 which had been completed but not sold.

h) Amount of over-or underapplied overhead:

Actual total overhead        $66,950

Total overhead applied        61,800  

Underapplied overhead     $5,150                  

Explanation:

a) Data:

1. Job 50 in process:

Beginning Job 50 in process:

Direct materials               $20,600

Direct labor                       $12,360

Manufacturing overhead $16,480

Total                                 $49,440

2. Jan. 1 Job 49 completed at $92,700 (part of finished goods inventory)

3. Beginning raw materials inventory = $15,450

4. Production, Completion, and Sales of Jobs:

Production started on Jobs 51 and 52

Completed Jobs 50 and 51

Sold on account:

Job 49  $125,660

Job 50  $162,740

5. Additional events:

Purchase of raw materials on account = $92,700

Factory labor costs of $72,100 ($16,480 of it, employer payroll taxes)

Manufacturing overhead costs:

Indirect materials                            $17,510

Indirect labor                                $20,600

Equipment Depreciation              $12,360

Other manufacturing overheads $16,480 (on account)

Total manufacturing overhead   $66,950

6. Allocation of direct materials and labor to jobs:

Job No.     Direct Materials    Direct Labor

50                  $10,300             $5,150

51                     40,170             25,750

52                  30,900             20,600

                    $81,370            $51,500

6. Job costing system accumulates and allocates Marigold Company's direct material, labor, manufacturing overhead costs to jobs based on their usage of the various resources in the production of goods and services.

the answer choices are:

provides online banking

provides automatic payment services

provides home loans by using saving accounts

accept tax return refunds

hopefully someone can answer the question now lol