Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,600, direct labor $13,560, and manufacturing overhead $18,080. As of January 1, Job No. 49 had been completed at a cost of $101,700 and was part of finished goods inventory. There was a $16,950 balance in the Raw Materials Inventory account.
 

During the month of January, Deglman Manufacturing 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 $137,860 and $178,540, respectively. The following additional events occurred during the month.

           

1.

Purchased         additional raw materials of $101,700 on account.

 

2.

Incurred         factory labor costs of $79,100. Of this amount $18,080 related to         employer payroll taxes.

 

3.

Incurred         manufacturing overhead costs as follows: indirect materials $19,210;         indirect labor $22,600; depreciation expense on equipment $21,470; and         various other manufacturing overhead costs on account $18,080.

 

4.

Assigned         direct materials and direct labor to jobs as follows.

  

Job No.

Direct Materials

Direct Labor

 

50

$11,300

$5,650

 

51

44,070

28,250

 

52

33,900

22,600

            

     

Calculate   the predetermined overhead rate for 2014, assuming Degelman Company estimates   total manufacturing overhead costs of $1,107,400, direct labor costs of $791,000,   and direct labor hours of 22,600 for the year. (Round answer to the nearest whole percent, e.g. 25.)

  

Predetermined     overhead rate

%

    

  

SHOW     LIST OF ACCOUNTS

  

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.

  

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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

  

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). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

  

What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?