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Lott Company uses a job order cost system and applies overhead to production on the...

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Accounting

Lott Company uses a job order cost system and applies overhead to production on the basis of direct

labor costs. On January 1, 2017, Job 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

$16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods

inventory. There was a $15,000 balance in the Raw Materials Inventory account. During the month of

January, Lott 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 $158,000, respectively. The following

additional events occurred during the month.

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