Sloan Technology Co. manufactures DVDs for computer software and entertainment companies. Sloan uses job order costing. On June 2, Sloan began production of 5,200 DVDs, Job 423, for Cyclorama Pictures for $1.20 sales price per DVD. Sloan promised to deliver the DVDs to Cyclorama Pictures by June 5. Sloan incurred the following direct costs: (Click the icon to view the costs.) Read the requirements. (Click the icon to view additional information.) Requirement 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job. Begin by determining the total amount of direct materials and direct labor incurred on the job. Next, calculate the predetermined overhead allocation rate and apply manufacturing overhead to the job. Lastly, compute the total cost of Job 423 and the cost per DVD. Job Cost Record Job No. 423 Customer Name Job Description Date Promised 6-5 Cyclorama 5,200 DVDs Direct materials Date Started 6-2 Date Completed 6-3 Manufacturing overhead allocated Requisition Date Number Amount Direct labor Labor Time Record Number Amount Date Rate Amount of direct labor cost Overall Cost Summary 760 Dimet materials 6-2 63 S 372 655 $ 140 6-2 64 700 71 128 labor cost of direct 6-2 63 372 655 140 6-2 64 700 Overall Cost Summary 6-3 74 126 656 260 Direct materials Direct labor Totals Manufacturing overhead Allocated Total Job Cost Cost per DVD Requirement 2. Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by journalizing the use of direct materials. Date Jun. 3 Accounts Debit Credit Jun. 3 Next, journalize the use of direct labor. Date Jun. 3 Accounts Debit Credit Now journalize the allocation of overhead to Job 423. Date Jun. 3 Accounts Debit Credit Requirement 3. Journalize completion of the job and the sale of the 5,200 DVDs on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the entry to show the completion of the job. Date Jun. 3 Accounts Next, journalize the revenue portion of the sale of Job 423. Date Jun. 3 Accounts Finally, journalize the cost of goods portion of the sale. II Debit Credit Debit Credit II Next, journalize the revenue portion of the sale of Job 423. Date Jun. 3 Accounts Finally, journalize the cost of goods portion of the sale. Date Jun. 3 Accounts Debit Credit Debit Credit Requirements 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job. 2. Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. 3. Journalize completion of the job and the sale of the 5,200 DVDs on account. Print Done I Sloan Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $559,000 and estimated direct labor costs of $430,000. Job 423 was completed and shipped on June 3. More info Data table Date Labor Time Record No. Description Amount 6/02 6/03 655 656 10 hours @ $14 per hour $ 20 hours @ $13 per hour 140 260 Materials Requisition Date No. Description Amount 6/02 63 6/02 64 31 lbs. polycarbonate plastic @ $12 per lb. 25 lbs. acrylic plastic @ $28 per lb. $ 372 700 6/03 74 3 lbs. refined aluminum @ $42 per lb. 126