Prepare job cost record and journal entries (Learning Objectives 2, 3, 4, S)

Guandong Technology manufactures CDs and DVDs for computer software and entertainment companies. Guandong Technology uses job costing and has a perpetual inventory system.

On November 2, Guandong Technology began production of 5,000 DVDs, Job 423, for Fion Pictures for $1.10 each. Guandong Technology promised to deliver the DVDs to Fion by November 5. Guandong Technology incurred the following direct labor and direct material costs:

Guandong Technology allocates manufacturing overhead to jobs based on the relationship between expected overhead costs ($537,600) and expected direct labor costs ($448,000). Job 423 was completed and shipped on November 3.
Requirements 1. Prepare a job cost record for Job 423 similar to Exhibit 3-11.
2. Journalize in summary form the requisition of direct materials and the assign¬ ment of direct labor and manufacturing overhead to Job 423.
3. Journalize completion of the job and the sale of the 5,000 DVDs on account.

Transcribed Image Text:

Labor Time Date Record No. Description Amount 11-2 655 10 hours @ $22 $220 11-3 656 20 hours @ $16 320 Materials Requisition Date No. Description Amount 11-2 63 31 lb. polycarbonate plastic @ $11 $341 11-2 64 25 lb. acrylic plastic @ $28 700 11-3 74 3 lb. refined aluminum @ $48 144