Ye Technology Co. manufactures DVDs for computer software and entertainment companies. Ye uses job order costing.
On November 2, Ye began production of 5,200 DVDs, Job 423, for Prototype Pictures for $1.70 sales price per DVD. Ye promised to deliver the DVDs to Prototype by November 5. Ye incurred the following direct costs:

Ye Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $550,000 and estimated direct labor costs of $440,000. Job 423 was completed and shipped on November 3.
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?

Transcribed Image Text:

Labor Time Record No. Description Date Amount 10 hours @ $16 per hour 20 hours @ $13 per hour 11/02 655 $ 160 11/03 656 260 Materials Requisition No. Description Amount Date 31 Ibs. polycarbonate plastic e $11 per Ib. 25 Ibs. acrylic plastic e $28 per Ib. 3 Ibs. refined aluminum e $42 per Ib. 11/02 63 $ 341 11/02 64 700 11/03 74 126