(L. OBJ. 2, 3, 4) Preparing and using a job cost record [30—35 min] Classic Technology,...

(L. OBJ. 2, 3, 4) Preparing and using a job cost record [30—35 min]

Classic Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Classic USCS job order costing and has a perpetual inventory system.

On November 2, Classic began production of 5,100 DVDs, Job 423, for Cheetah Pictures for $1.30 each. Classic promised to deliver the DVDs to Cheetah by November 5. Classic incurred the following costs:

Classic Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead ($520,000) and estimated direct labor costs ($450,000). Job 423 was completed and shipped on November 3.

Requirements

1. Prepare a job cost record similar to Exhibit 16-7 for job 423. Calculate the predetermined overhead rate; then apply manufacturing overhead to the job

2. Journalize in summary form the requisition of direct materials and the assignment of direct labor and manufacturing overhead to job 423.

3. Journalize completion of the job and the sale of the 5,100 DVDs.