True Technology Co. manufactures CDs and DVDs for computer software and entertainment companies. True uses job order costing. On November 2, True began production of 5,500 DVDs, Job 423, for Leopard Pictures for $ 1.60 sales price per DVD. True promised to deliver the DVDs to Leopard by November 5. True incurred the following costs:

Leopard Pictures provides the movie file for True to burn onto the DVDs at a cost of $ 0.45 per DVD. True Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $ 550,000 and estimated direct labor costs of $ 500,000. Job 423 was completed and shipped on November 3.

Requirements
1. Prepare a job cost record for Job 423. Calculate the predetermined overhead al-location 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 the allocation of manufacturing overhead to Job 423.
3. Journalize completion of the job and the sale of the 5,500DVDs.

Transcribed Image Text:

Amount Date 11/02 1 1/03 Labor Time Record No. 655 656 Description 10 hours $18 per hour 180 20 hours $14 per hour 280 Materials Date Requisition No. 11/02 11/02 11/03 Description Amount 63 64 74 31 lbs. polycarbonate plastic 25 lbs. acrylic plastic e s29 per lb. $12 perlb. 372 725 144 3 lbs. refined aluminum$48 per b.