Lockheed Martin Corporation undertakes defense contracts using job costing. In November 2031, the company undertakes three contracts with the following costs:

• Contract X: Direct materials $600,000, Direct labor $400,000, Factory overhead $200,000
• Contract Y: Direct materials $700,000, Direct labor $450,000, Factory overhead $250,000
• Contract Z: Direct materials $650,000, Direct labor $425,000, Factory overhead $225,000

Required:

• Calculate the total manufacturing costs for each contract.
• Allocate factory overhead to each contract using the predetermined overhead rate based on direct labor costs.
• Determine the cost per unit for each contract produced.
• Analyze the profitability of each contract based on job costing principles.
• Prepare a job costing statement for Lockheed Martin Corporation.