Great Quality manufactures tires for all-terrain vehicles. Great Quality uses job costing and has a perpetual inventory system. On November 22, Great Quality received an order for 170 TX tires from ATV Corporation at a price of $60 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Great Quality began production on November 30 and incurred the following direct labour and direct materials costs in completing the order:

Great Quality allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($529,000) and expected direct labour hours (23,000). Job 298 was completed on December 3 and shipped to ATV on December 5.
Requirements
1. Prepare a job cost record for Job 298 similar to Exhibit 3-7.
2. Calculate the total profit and the per-unit profit for Job 298.

Transcribed Image Text:

Date 11/30 12/3 Labour Time Record No. 1896 1904 Description 12 hours $20 30 hours $14 Amount $240 420 Materials Requisition No. 437 439 501 Description Date 11/30 12/2 12/3 60 kg. rubber $12 40 metres polyester fabric @ $16 100 metres steel cord a $10 Amount $ 720 640 1,000