Question
Ye Technology Co. manufactures DVDs for computer software and entertainment companies. Ye uses job order costing. On November 2, Ye began production of 5,900 DVDs,
Ye Technology Co. manufactures DVDs for computer software and entertainment companies. Ye
uses job order costing. On November 2, Ye began production of 5,900 DVDs, Job 423, for
Panorama Pictures for $1.10 sales price per DVD. Ye promised to deliver the DVDs to Panorama
Pictures by November 5. Ye incurred the following direct costs:
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
5,900 DVDs on account.
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