Question 2 True Technology. Co manufactures CDs and DVDs for computer software and entertainment companies. True uses job order costing and has a perpetual inventory system. On April 2, True began production of 5,900 DVDs, Job 423, for Prototype Pictures for $1.50 sales price per DVD. True promised to deliver the DVDs to Prototype by April 5. True incurred the following costs: Date Labor Time Record No. Description Amount 4/02 10 hours @ 518 per hour 10 hours $18 $ 180 656 20 hours 514 per hour 280 656 4103 Materials Description Amount Requisition No. 63 64 74 3 Date 1/02 4/02 4/03 $ 31 lbs, polycarbonate plastic @ 513 per lb. 25 lbs, acrylic plastic @ S27 per lb. lbs. refined aluminum @ $48 per b. 403 675 Prototype provides the movie file for True to bum onto the DVDs at a cost of $0.65 per DVD. True Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of 600,000 and estimated direct labor costs of $480,000. Job 423 was completed and shipped on April 3. Requirements 1. 2. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate; then allocate manufacturing overhead to the job. Joumalize in summary form the requisition of direct materials (including the movie files) and the assignment of direct labor and the allocation of manufacturing overhead to Job 423 Journalize completion of the job and the sale of the 5,900 DVDs 3. Job Cost Record Job No. 423 Customer Name Job Description Date Promised 4-5 Prototype 5,900 DVDs Direct materials Requisition Number Date Amount Date Started 4-2 Date Completed 4-3 Direct labor Manufacturing overhead allocated Labor Time Record Number Amount Date Rale Amount (1) (2) of direct 655 180 labor cost Overall Cost Summary 656 280 Direct materials Direct labor Manufacturing overhead Allocated Total Job Cost Cost per DVD Totals