Best Tire manufactures tires for all-terrain vehicles. Best Tire uses job costing and has a perpetual inventory system. On November 22, Best Tire received an order for 110 TX tires from ATV Corporation at a price of $50 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Best Tire began production on November 30 and incurred the following direct labor and direct materials costs in completing the order:

Best Tire allocates manufacturing overhead to jobs on the basis of the relationship between expected overhead costs ($456,000) and expected direct labor hours (19,000). 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:

Date 1/30 12/3 Labor Time Record N. 1896 1904 Description 12 hours at $20 30 hours at $14 Amount $240 $420 Date 11/30 12/2 12/3 Materials Requisition No 437 439 501 Description 60 lbs. rubber at $12 40 meters polyester fabric at $10 100 meters steel cord at $8 Amount $720 $400 $ 800