Preparing and using a job cost record to prepare journal entries Root Technology Co. manufactures…

Preparing and using a job cost record to prepare journal entries Root Technology Co. manufactures CDs and DVDs for computer software and entertainment companies. Root uses job order costing. On November 2, Root began production of 5,500 DVDs, Job 423, for Digital Pictures for $1.20 sales price per DVD. Root promised to deliver the DVDs to Digital Pictures by November 5. Root incurred the following costs:

Root Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $504,000 and estimated direct labour costs of $420,000. Job 423 was completed and shipped on November 3.

 Requirements]

 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate; then allocate manufacturing overhead to the job.

2. Journalize in summary form the requisition of direct materials and the assignment of direct labour allocation of manufacturing overhead to Job 423. Wages are not yet paid.

 3. Journalize completion of the job and the sale of the 5,500 DVDs on account.