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.
|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.