Question: Pro Tire manufactures tires for all terrain vehicles Pro Tire

Pro Tire manufactures tires for all- terrain vehicles. Pro Tire uses job costing and has a perpetual inventory system. On November 22, Pro Tire received an order for 190 TX tires from ATV Corporation at a price of $ 70 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Pro Tire began production on November 30 and incurred the following direct labor and direct materials costs in completing the order:

Pro Tire allocates manufacturing overhead to jobs on the basis of the relationship ­between expected overhead costs ($ 490,000) and expected direct labor hours (17,500). Job 298 was completed on December 3 and shipped to ATV on December 5.

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

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  • CreatedAugust 27, 2014
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