Date	Labor Time Record No.	Description	Amount
6/02	655	10 hours @ $18 per hour	$180
6/03	656	20 hours @ $15 per hour	300

Date	Materials Requisition No.	Description	Amount
6/02	63	31 lbs. polycarbonate plastic @ $12 per lb.	$372
6/02	64	25 lbs. acrylic plastic @ $29 per lb.	725
6/03	74	3 lbs. refined aluminum @ $48 per lb.	144

Sloan Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $540,000 and estimated direct labor costs of $400,000. Job 423 was completed and shipped on June 3.

Requirement 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job.

Begin by determining the total amount of direct materials and direct labor incurred on the job. Next, calculate the predetermined overhead allocation rate and apply manufacturing overhead to the job. Lastly, compute the total cost of Job 423 and the cost per DVD.

Job Cost Record
Job No.	423
Customer Name		Cyclorama
Job Description		5,800 DVDs
Date Promised 6-5
	Direct materials
	Requisition
Date	Number	Amount
62	63	$372
62	64	725
63	74	144
Totals

Date Started 6-2
Direct labor
Labor Time
Record
Number	Amount
655	$180
656	300

Date Completed 6-3
Manufacturing overhead allocated
Date	Rate		Amount
		of direct
	labor cost
Overall Cost Summary
Direct materials
Direct labor
Manufacturing overhead
Allocated
Total Job Cost
Cost per DVD

Part 2

Requirement 2. Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries.)

Start by journalizing the use of direct materials.

Date			Accounts	Debit	Credit
Jun. 3

Part 3

Next, journalize the use of direct labor.

Date			Accounts	Debit	Credit
Jun. 3

Part 4

Now journalize the allocation of overhead to Job 423.

Date			Accounts	Debit	Credit
Jun. 3

Part 5

Requirement 3. Journalize completion of the job and the sale of the

5,800

DVDs on account. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by preparing the entry to show the completion of the job.

Date			Accounts	Debit	Credit
Jun. 3

Part 6

Next, journalize the revenue portion of the sale of Job 423.

Date			Accounts	Debit	Credit
Jun. 3

Part 7

Finally, journalize the cost of goods portion of the sale.

Date			Accounts	Debit	Credit
Jun. 3