Question

More Info Lu Technology Co. manufactures DVDs for computer software and en 5,800 DVDs, Job 423 for Digital Pictures for $1.10 sales price per DV direct costs (Click the icon to view the costs.) (Click the icons Lu 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 September 3. Read the requirements 0 Data Table Print Done Next, calculate the predetermined overhead allocation rate and apply Labot Time Record No Date 9102 9103 . Description Amo 10 hours $10 per hours 20 hours 515 per hour Materials Requisition 31 os. polyester store plantea 518 25 Tbs. acrylic plastica 527 per la stes vered aluminum Pine Dona Pearson

Answer 1

1.  Predetermined overhead allocation rate = Estimated overheads/Estimated direct labor costs = $559000/$430000 = 130% of direct labor cost

Note: Only the missing parts of the job cost record have been completed and shown below.

Job Cost Record
Job No. 423
Direct materials		Direct labor		Manufacturing overhead allocated
				Date	Rate	Amount
				9-3	130% of direct	624
					labor cost
				Overall Cost Summary
				Direct materials		1213
				Direct labor		480
				Manufacturing overhead
				Allocated		624
				Total Job Cost		2317
Totals	1213		480	Cost per DVD		0.40

The cost per DVD has been rounded off to 2 decimal places. Kindly round off as required since no instructions have been provided with the question regarding rounding off.

2.

Date	Accounts	Debit	Credit
Sep. 3	Work in process	1213
	Raw materials		1213
	(To record the use of direct materials)
Sep. 3	Work in process	480
	Wages payable		480
	(To record the use of direct labor)
Sep. 3	Work in process	624
	Manufacturing overhead		624
	(To record the allocation of overhead)

3.

Date	Accounts	Debit	Credit
Sep. 3	Finished goods	2317
	Work in process		2317
	(To record completion of the job)
Sep. 3	Accounts receivable	6380
	Sales revenue (5800 x $1.10)		6380
	(To record the sales on account)
Sep. 3	Cost of goods sold	2317
	Finished goods		2317
	(To record the cost of goods sold)