Determine the cost of a job and record entries (Learning Objectives 2, 3, 4, S)

E-Z-Boy started and finished Job 310 during April. The company’s records show that the following direct materials were requisitioned for Job 310:

Lumber: 50 units at $9 per unit Padding: 15 yards at $20 per yard Upholstery fabric: 30 yards at $25 per yard Labor time records show the following employees (direct labor) worked on Job 310: Vince Owens: 10 hours at $10 per hour Patrick Erin: 15 hours at $15 per hour E-Z-Boy allocates manufacturing overhead at a rate of 80% of direct labor cost.

Requirements 1. Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job 310’s job cost record.

2. Job 310 consists of five recliners. If each recliner sells for $600, what is the gross profit per recliner?

3. Record the summary journal entries needed to:

a. record the direct materials requisitioned for the job

b. record the direct labor used on the job

c. allocate manufacturing overhead to the job

d. record the completion of the job

e. record the sale on account of all five recliners (assume a perpetual inventory system)