Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lu Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system. On
Lu Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system. On April 2, Lu began production of 5,900 DVDs, Job 423, for Stick People Pictures for $1.30 sales price per DVD. Lu promised to deliver the DVDs to Stick People by April 5. Lu incurred the following costs: | ||||||||||||
Date | Labor Time Record No. | Description | Amount | |||||||||
4/2 | 655 | 10 hours @ $14 | $140 | |||||||||
4/3 | 656 | 20 hours @ $13 | 260 | |||||||||
Date | Material Requisition No. | Description | Amount | |||||||||
4/2 | 63 | 31 lbs. polycarbonate plastic @ $11 | $341 | |||||||||
4/2 | 64 | 25 lbs. acrylic plastic @ $27 | 675 | |||||||||
4/3 | 74 | 3 lbs. refined aluminum @ $42 | 126 | |||||||||
Stick People provides the movie file for Lu burn onto the DVDs at a cost of $0.50 per DVD. Lu Technology allocated manufacturing overhead to jobs based on the relation between estimated overhead of $540,000 and estimated direct labor costs of $432,000. Job 423 was completed and shipped on April 3. | ||||||||||||
Requirements: | ||||||||||||
1. Prepare a job cost record for Job 423. Calculate the predetermined overhead rate; then allocate manufacturing overhead to the job. | ||||||||||||
2. Journalize in summary form the requisition of direct materials (including the movie files) and the assignment of direct labor and manufacturing overhead to Job 423. | ||||||||||||
3. Journalize completion of the job and the sale of the 5,900 DVDs. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started