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2. Prepare job cost record (5 Marks) Pro Tire manufactures tires for all-terrain vehicles. Pro Tire uses job costing and has a perpetual inventory system.

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2. Prepare job cost record (5 Marks) Pro Tire manufactures tires for all-terrain vehicles. Pro Tire uses job costing and has a perpetual inventory system. On November 22, Pro Tire received an order for 190 TX tires from ATV Corporation at a price of $70 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Pro Tire began production on November 30 and incurred the following direct labor and direct materials costs in completing the order: Labor Time Date Record No. Description Amount 11/30 1896 12 hours at $20 $240 12/3 1904 30 hours at $18 $540 Materials Date Requisition No. Description Amount 11/30 437 60 lbs, rubber at $10 $ 600 12/2 439 40 meters polyester fabric at $14 $ 560 12/3 501 100 meters steel cord at $12 $1,200 5|Page Pro Tire allocates manufacturing overhead to jobs on the basis of the relationship between expected overhead costs ($490,000) and expected direct labor hours (17,500). Job 298 was completed on December 3 and shipped to ATV on December 5. Requirements 1. Prepare a job cost record for Job 298. 2. Calculate the total profit and the per-unit profit for Job 298.3. Global cost-benefit analysis (5 Marks) Due to rising labor costs in China, Superior Garment, based in Singapore, is considering shifting part of its production facilities from China to an emerging market, Vietnam, to better integrate its supply chain in the Southeast Asia region. Jason Chua, the CFO of the company, estimates that Superior Garment needs to invest $735,000 to acquire an existing factory in Vietnam and another $285,000 in renovations and installation of new machineries. The cost of training new workers is estimated to be $310,000. Andrew believes that the new factory will lead to an estimated $928,000 savings in labor costs and another $417,000 savings in logistics expenses. Requirement Use cost-benefit analysis to recommend whether Fortune Garment should shift part of its production facilities from China to Vietnam. Explain your answer. Compute equivalent units and percentage of completion (5 Marks) China Mobile uses a process costing system to determine the product costs of one of its products. The product will go through three processes and packaging will be the last process. The Packaging Department reported the following data for last month: China Mobile Packaging Department Step 1: Step 2: Equivalent Units Physical Flow of Units and Equivalent Units Flow of Physical Transferred Direct Conversion Flow of Production Units In Materials Costs Units to account for: Beginning work in process 8.400 Started in production (a) Total physical units to account for 19.000 Units accounted for: Completed and transferred out 12 000 (d) Ending work in process 5.600 1,400 Total physical units accounted for Total Equivalent Units 10 Requirements 1. Summarize the flow of physical units and complete the missing figures from (a) to (j). 2. Compute the percentage completed of ending work in process inventory with respect to direct materials and with respect to conversion

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