Question

Classic Technology Co. manufactures DVDs for computer software and entertainment companies. Classic uses job order costing. On April 2, Classic began production of 5,000 DVDs, Job 423, for Cyclorama Pictures for $1.20 sales price per DVD. Classic promised to deliver the DVDs to Cyclorama Pictures by April 5. Classic incurred the following direct costs:

Cassic Technology Co. manufactures DVDs for computer sotware and entertainment or $1.20 sales price per DVD. Classic promised to delver the DVDs to Cyclorama Pictures by Apil 5.Classic inourred the folowing direct costs .companies Classic uses job order costing. On Apill 2 Cisssic began production of S,oodpvos, Job 423, for Cycicrama Pictures E (Cick the icon to view the costs.) Read the requirements Click the loon to view additional information.) Requirement 1. Prepare a job cost record for Jot 423 Caiculate the predelermined overhead alocation rae (round Begin by detemining the total amount of direct meterials and direct labor incurred on the job. Next, caluiae the Data Table the total cost of Job 423 and the cost per DVD Job Cost Record Job No. 423 Customer Name Jeb Desoription Date Promised 4-6 pute Date Labor Time Record No /02 Cycloram 5000 DVD 655 10 hours $18 per hour 20 hours$14 per hour 180 280 656 More Info Materials Requisition Date 402 402 4/03 No. 63 31 bo. polycarbonate plastic@$13 per b 43 64 25 bs acrylic plastic $27 per b Description Classic Technology allocates menufacturing overhead to jobs based on the of $420,000 Job 423 was complated and shipped on Apri 3 Da Num u relation batween essimaed overhead of $504,000 and estimated direot labor coss 675 74 3 bsrefined auminam@$48 per Ib Print Done Print Done Choose from any lst or enter any number in the input fields and then continue to the next question

Answer 1

1.

Job Cost Record
Job No. 423
Customer Name Cyclorama
Job Description 5,000 DVDs
	Direct materials		Direct labor		Manufacturing overhead allocate
Date	Requisition Number	Amount	Labor Time Record Number	Amount	Date	Rate	Amount
					4-2	120% of direct labor cost
4-2	63	403	655	180			552
4-2	64	675			Overhead Cost Summary
4-3	74	144	656	280	Direct materials		1222
					Direct labor		460
					Manufacturing overhead Allocated		552
					Total Job Cost		2234
Totals		1222		460	Cost per DVD		0.4468

Note: Kindly round off the cost per DVD as required since there are no rounding off instructions given with the question.

Predetermined overhead rate = $504000/$420000 = 120% of direct labor cost

2.

2	Date	Accounts	Debit	Credit
	Apr. 3	Work-in-process inventory	1222
		Raw materials inventory		1222
		(To record use of direct materials)
	Apr. 3	Work-in-process inventory	460
		Wages payable		460
		(To record use of direct labor)
	Apr. 3	Work-in-process inventory	552
		Manufacturing overhead		552
		(To record the allocation of overhead to Job 423)

3.

Date	Accounts	Debit	Credit
Apr. 3	Finished goods inventory	2234
	Work-in-process inventory		2234
	(To record the completion of Job 423)
Apr. 3	Accounts receivable	6000
	Sales revenue (5000 x $1.20)		6000
	(To record sale of Job 423)
Apr. 3	Cost of goods sold	2234
	Finished goods inventory		2234
	(To record the cost of the goods sold)