Managerial Accounting

1.

Date Labor Time Record No. Description Amount 6102 655 10 hours @ $16 per hour $ 160 6103 656 20 hours @ $14 per hour 280 Materials Requisition Date No. Description Amount 6102 63 31 lbs. polycarbonate plastic @ $12 per lb. $ 372 6'02 64 25 lbs. acrylic plastic @ $29 per lb. 725 6l'03 74 3 lbs. refined aluminum @ $48 per lb. 144 More Info Lu Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $667,000 and estimated direct labor costs of $460,000. Job 423 was completed and shipped on June 3. Requirements 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. . 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. 3. Journalize completion of the job and the sale of the 5,800 DVDs on account. Lu Technology Co. manufactures DVDs for computer software and entertainment companies. Lu uses job order costing. On June 2, Lu began production of 5,800 DVDs, Job 423, for Portrait Pictures for $1.80 sales price per DVD. Lu promised to deliver the DVDs to Portrait Pictures by June 5. Lu incurred the following direct costs: E (Click the icon to view the costs.) 0 (Click the icon to view additional information.) Read the @uirements. 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 Portrait Job Description 5,800 DVDs Date Promised 65 Date Started 6-2 Date Completed 6-3 Direct labor Manufacturing overhead Allocated Direct materials Direct labor Manufacturing overhead allocated Labor Time Requisition Reoord Date Number Amount Number Amount Date Rate Amount of direct 62 63 372 655 $ 160 labor cost 62 64 725 Overall Cost Summary 63 74 144 656 280 Direct materials Total Job Cost Totals Cost per DVD 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 Next, journalize the use of direct labor. Date Accounts Debit Credit Jun. 3Now journalize the allocation of overhead to Job 423. Date Accounts Debit Credit Jun. 3Requirement 3. Journalize completion of the job and the sale of the 5,800 DVDs on account. (Record debits rst, then credits. Exclude explanations from any journal entries.) Credit Begin by preparing the entry to show the completion of the job. Jun. 3 Next, joumalize the revenue portion of the sale of Job 423. Finally, journalize the cost of goods portion of the sale. Date Accounts Debit Credit Jun. 3