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week 3 lab 3 1 730601

Lu Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system.
On April 2, Lu began production of 5,900 DVDs, Job 423, for Stick People Pictures for $1.30 sales price per DVD. Lu promised to deliver the DVDs to Stick People by April 5. Lu incurred the following costs:
Date Labor Time Record No. Description Amount
4/2 655 10 hours @ $14 $140
4/3 656 20 hours @ $13 260
Date Material Requisition No. Description Amount
4/2 63 31 lbs. polycarbonate plastic @ $11 $341
4/2 64 25 lbs. acrylic plastic @ $27 675
4/3 74 3 lbs. refined aluminum @ $42 126
Stick People provides the movie file for Lu burn onto the DVDs at a cost of $0.50 per DVD. Lu Technology allocated manufacturing overhead to jobs based on the relation between
estimated overhead of $540,000 and estimated direct labor costs of $432,000. Job 423 was completed and shipped on April 3.
Requirements:
1. Prepare a job cost record for Job 423. Calculate the predetermined overhead 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 manufacturing overhead to Job 423.
3. Journalize completion of the job and the sale of the 5,900 DVDs.

Bluebird Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:
Job
No.		 Date Total Cost of Job
at October 31		 Total Manufacturing Costs
Added in November
Started Finished Sold
1 10/3 10/12 10/13 $1,900
2 10/3 10/30 11/1 1,800
3 10/17 11/24 11/27 400 $1,500
4 10/29 11/29 12/3 800 1,200
5 11/8 11/12 11/14 550
6 11/23 12/6 12/9 700
Requirements:
1. Which type of costing system is Bluebird using? What piece of data did you base your answer on?
2. Use the data in the table to identify the status of each job. Compute Bluebird’s account balance at October 31 for Work in process inventory, Finished goods inventory, and Cost of goods
sold. Compute, by job, account balances at November 30 for Work in process inventory, Finished goods inventory, and Cost of goods sold.
3. Prepare journal entries to record the transfer of completed units from Work in process to Finished goods for October and November.
4. Record the sale of Job 3 for $2,100.
5. What is the gross profit for Job 3? What other costs must this gross profit cover?

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