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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
| Lu Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system. On April 2, Lu began production of 5,900 DVDs, Job 423, for Stick People Pictures for $1.30 sales price per DVD. Lu promised to deliver the DVDs to Stick People by April 5. Lu incurred the following costs: |
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| Date | Labor Time Record No. | Description | Amount | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| 4/2 | 655 | 10 hours @ $14 | $140 | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| 4/3 | 656 | 20 hours @ $13 | 260 | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Date | Material Requisition No. | Description | Amount | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| 4/2 | 63 | 31 lbs. polycarbonate plastic @ $11 | $341 | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| 4/2 | 64 | 25 lbs. acrylic plastic @ $27 | 675 | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| 4/3 | 74 | 3 lbs. refined aluminum @ $42 | 126 | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| Stick People provides the movie file for Lu burn onto the DVDs at a cost of $0.50 per DVD. Lu Technology allocated manufacturing overhead to jobs based on the relation between estimated overhead of $540,000 and estimated direct labor costs of $432,000. Job 423 was completed and shipped on April 3. |
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| Requirements: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
| 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead rate; then allocate manufacturing overhead to the job. | Â | Â | Â | Â | ||||||||
| 2. Journalize in summary form the requisition of direct materials (including the movie files) and the assignment of direct labor and manufacturing overhead to Job 423. | Â | |||||||||||
| 3. Journalize completion of the job and the sale of the 5,900 DVDs. | ||||||||||||
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