Boeing uses job order costing for its aircraft manufacturing. The following information is for Job No. 101:
•Direct materials: $50,000
•Direct labor: $30,000
•Manufacturing overhead applied: $15,000
Required:
1.Calculate the total cost of Job No. 101.
2.Prepare the journal entries to record the costs associated with Job No. 101.
3.Discuss how job order costing helps Boeing manage production costs.