Boeing uses job costing for its aircraft production. The following information is provided for Job No. 505:
•Direct materials: $300,000
•Direct labor: $250,000
•Manufacturing overhead applied: $200,000
Required:
1.Calculate the total cost of Job No. 505.
2.Prepare the journal entries to record the costs associated with Job No. 505.
3.Discuss the advantages of job costing for Boeing's production process.