Durable Tire manufactures tires for all-terrain vehicles. Durable Tire uses job costing and has a perpetual inventory system. On November 22, Durable Tire received an order for 100 TX tires from ATV Corporation at a price of $60 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Durable Tire began production on November 30 and incurred the following direct labor and direct materials costs in completing the order:

Durable Tire allocates manufacturing overhead to jobs on the basis of the relationship between expected overhead costs ($529,000) and expected direct labor hours (23,000). Job 298 was completed on December 3 and shipped to ATV on December 5.
Requirements
1. Prepare a job cost record for Job 298.
2. Calculate the total profit and the per-unit profit for Job 298.

Transcribed Image Text:

Labor Time Date Record No. Description Amount 11/30 12 hours at $16 $192 1896 1904 $540 12/3 30 hours at $18 Materials Date Requisition No. Description 60 pounds rubber at $14 Amount $ 840 $ 480 $ 800 437 11/30 40 meters polyester fabric at $12 12/2 439 12/3 100 meters steel cord at $8 501