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Lott Company uses a job order cost system and applies overheadto production on the basis of direct labor costs. On January 1,2017, Job No. 50 was the only job in process. The costs incurredprior 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 No. 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, Lott Company began production on Jobs51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were alsosold on account during the month for $150,060 and $194,340,respectively. The following additional events occurred during themonth.1.Purchased additional raw materials of $110,700 on account.2.Incurred factory labor costs of $86,100. Of this amount $19,680related to employer payroll taxes.3.Incurred manufacturing overhead costs as follows: indirectmaterials $20,910; indirect labor $24,600; depreciation expense onequipment $14,760; and various other manufacturing overhead costson account $19,680.4.Assigned direct materials and direct labor to jobs asfollows.Job No.Direct MaterialsDirect Labor50$12,300$6,1505147,97030,7505236,90024,600Prepare the journal entries to record the purchase of rawmaterials, the factory labor costs incurred, and the manufacturingoverhead costs incurred during the month of January.(Credit account titles are automatically indented whenamount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit(1)(2)(3)Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in (a). (Credit account titlesare automatically indented when amount is entered. Do not indentmanually.)No.Account Titles and ExplanationDebitCredit(1)(2)(3)Total the job cost sheets for any job(s) completed during themonth. Prepare the journal entry to record the completion of anyjob(s) during the month. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)Account Titles and ExplanationDebitCreditPrepare the journal entries to record the sale of any job(s)during the month. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)No.Account Titles and ExplanationDebitCredit(1)(To record sale of jobs)(2)(To record cost of jobs)What is the balance in the Finished Goods Inventory account atthe end of the month? What does this balance consist of?Finished Goods Inventory$ Job No. 50/Job No. 51/Job No. 52/Jobs 50 and 51/Jobs 51 and 52/ orJobs 50 and 52What is the amount of over- or underapplied overhead?Manufacturing Overhead