ACCOUNTING-Bluebird Manufacturing makes carrying cases for portable electronic devices
Bluebird Manufacturing makes
carrying cases for portable electronic devices. Its costing records yield the
Total Cost of Job
at October 31
Total Manufacturing Costs
Added in November
1. Which type of
costing system is Bluebird using? What piece of data did you base your answer
2. Use the data in the table to identify the status of each job.
Compute Bluebird’s account balance at October 31 for Work in process
inventory, Finished goods inventory, and Cost of goods
sold. Compute, by job, account balances at November 30 for Work in process
inventory, Finished goods inventory, and Cost of goods sold.
3. Prepare journal
entries to record the transfer of completed units from Work in process to
Finished goods for October and November.
4. Record the sale
of Job 3 for $2,100.
5. What is the gross
profit for Job 3? What other costs must this gross profit cover?
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:
Labor Time Record No.
10 hours @ $14
20 hours @ $13
Material Requisition No.
31 lbs. polycarbonate plastic @ $11
25 lbs. acrylic plastic @ $27
3 lbs. refined aluminum @ $42
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
estimated overhead of $540,000 and estimated direct labor costs of $432,000.
Job 423 was completed and shipped on April 3.
1. Prepare a job cost record for Job 423.
Calculate the predetermined overhead rate; then allocate manufacturing
overhead to the job.
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.
3. Journalize completion of the job and the sale of the 5,900
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