Preparing and using a job cost record to prepare journal entries Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing. On April 2, Ki began...

Preparing and using a job cost record to prepare journal entries

Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing.

On April 2, Ki began production of 6,000 DVDs, Job 423, for Paradigm Pictures for $1.20 sales price per DVD. Ki promised to deliver the DVDs to Paradigm Pictures by April 5. Ki incurred the following direct costs:

Ki Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $574,000 and estimated direct labor costs of job 423 was completed and shipped on April 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.


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.


3. Journalize completion of the job and the sale of the 6,000 DVDs on account.

Extracted text: Date Labor Time Record No. Description Amount 4/02 655 10 hours e $16 per hour $ 160 4/03 656 20 hours @ $15 per hour 300 Materials Requisition No. Date Description Amount 4/02 63 31 Ibs. polycarbonate plastic e $11 per lb. $ 341 4/02 25 Ibs. acrylic plastic e $29 per Ib. 64 725 4/03 74 3 Ibs. refined aluminum e $45 per Ib. 135