Superior Tire manufactures tires for all-terrain vehicles. Superior uses job costing and has a perpetual inventory system.
On September 22, Superior received an order for 170 TX tires from ATV Corporation at a price of $80 each. The job, assigned number 298, was promised for October 10. After purchasing the materials, Superior began production on September 30 and incurred the following direct labor and direct materials costs in completing the order:
Date Labor Time Description Amount
Record No.
9/30...............1896....................12 hours at $20....................$240
10/3...............1904....................30 hours at $18....................$540
Date Materials
Requisition
No. Description Amount
9/30..............437..........................60 lb. rubber at $12.............$720
10/2..............439..........40 meters polyester fabric at $10.............$400
10/3..............501.................100 meters steel cord at $8.............$800
Superior allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($490,000) and expected direct labor hours (17,500). Job 298 was completed on October 3 and shipped to ATV on October 5.
Requirements
1. Prepare a job cost record for Job 298.
2. Calculate the total profit and the per-unit profit for Job 298.