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Lu Technology, Co. manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing. 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: Date Labor Time Record No. Amount 4/02 Description 10 hours 514 per hour 20 hours 513 per hour 655 656 4/03 5 140 260 Date Materials Requisition No. Amount 4/02 4/02 4/03 63 64 Description 31 lbs, polycarbonate plastic @ 511 per lb. 25 lbs. acrylic plastic @ $27 per 3 lbs. refined aluminum $42 per ib. $ 341 675 126 74 Stick People provides the movie file for Lu to burn onto the DVDs at a cost of $0.50 per DVD. Lu Technology allocates 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. 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 (includ- ing the movie files) and the assignment of direct labor and the allocation of manufacturing overhead to Job 423. 3. Journalize completion of the job and the sale of the 5,900 DVDs

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