Concept explainers
Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses
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
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.
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