Question: Geolander Tire manufactures tires for all terrain vehicles Geolander uses

Geolander Tire manufactures tires for all- terrain vehicles. Geolander uses job costing and has a perpetual inventory system. On September 22, Geolander received an order for 100 TX tires from ATV Corpora-tion at a price of $ 50 each. The job, assigned number 298, was promised for October 10. After purchasing the materials, Geolander began production on September 30 and ­incurred the following direct labor and direct materials costs in completing the order:

Geolander allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($ 396,000) and expected direct labor hours (18,000). Job 298 was completed on October 3 and shipped to ATV on October 5.

1. Prepare a job cost record for Job 298.
2. Calculate the total profit and the per- unit profit for Job298.

Sale on SolutionInn
  • CreatedAugust 27, 2014
  • Files Included
Post your question