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

Geolander manufactures tires for all-terrain vehicles. Geolander uses job costing and has a perpetual inventory system.

On September 22, Geolander received an order for 100 TX tires from ATV Corporation at a price of $55 each. The job, assigned number 298, was promised for October 10. After purchasing the materials, Geolander began production on September 30 and incurred the following direct labor and direct materials costs in completing the order:

Geolander allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($420,000) and expected direct labor cost ($300,000). Job 298 was completed on October 3 and shipped to ATV on October 5.
Requirements 1. Prepare a job cost record for Job 298 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 298.
3. Journalize completion of the job and sale of the goods on account.

Transcribed Image Text:

Labor Time Date 9/30 * Record No. Description Amount 1896 12 hours @ $20 $240 10/3 1904 30 hours @ $19 570 Materials Requisition Date No. 9/30 437 10/2 439 10/3 501 Description 60 lb. rubber @ $18 40 meters polyester fabric @ $12 100 meters steel cord @ $10 Amount $1,080 480 1,000