Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2329214 • Letter: S
Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?
3.What was the total manufacturing cost assigned to Job P?
4.If Job P included 20 units, what was its unit product cost?
5.What was the total manufacturing cost assigned to Job Q?
6.If Job Q included 30 units, what was its unit product cost?
7.Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?
8.What was Sweeten Company’s cost of goods sold for March
9.What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?
10.How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
11.How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12.If Job P included 20 units, what was its unit product cost?
13.If Job Q included 30 units, what was its unit product cost?
14.Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?
15.What was Sweeten Company’s cost of goods sold for March?
Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 14,750 $ 17,850 $ 32,600 Estimated variable manufacturing overhead per machine-hour $ 3.30 $ 4.10Explanation / Answer
Moulding Fabrication Total Estimated Total Fixed OH $14,750 $17,850 $32,600 Estimated Total variable OH $8,250 $6,150 $14,400 Estimated Total mach Hrs *variable MOH per machine hr Total estimated OH $23,000 $24,000 $47,000 Moulding 2500*3.3 $8,250 Estimated Total Mach 4000 fabrication 1500*4.1 $6,150 Hrs Estimated plant wide oH rate /hr $11.75 Job P 2 Actual Machine Hrs Moulding 3600 fabrication 2500 Total 6100 OH rate /hr $11.75 Total MOH $71,675.00 Job Q Actual Machine Hrs Moulding 2700 fabrication 2800 Total 5500 OH rate /hr $11.75 Total MOH $64,625.00 3 Total Manufcaturing cost of Job P DM $32,000 DL $36,200 MOH $71,675.00 Total Manufcaturing cost of Job P $139,875 4 Unit Cost of Job P Total Manufacturing Cost $139,875 Units 20 unit product Cost $6,993.75 5 Total Manufcaturing cost of Job Q DM $17,500 DL $15,100 MOH $64,625.00 Total Manufcaturing cost of Job P $97,225 6 Unit Cost of Job Q Total Manufacturing Cost $97,225 Units 30 unit product Cost $3,240.83 7 Job P Job Q Total MOH Costs $139,875 $97,225 Add 80% Mark Up $111,900.0 $77,780.0 Total Selling Price of Jobs $251,775.0 $175,005.0 Units 20 30 SP/Unit $12,588.75 $5,833.50 8 Total manufacturing cost of Job P $139,875 Total manufacturing cost of Job Q $97,225 Sweeten Cost of Goods $237,100 Sold 9 Moulding Fabrication Estimated Total Fixed OH $14,750 $17,850 Estimated Total variable OH $8,250 $6,150 Total Estimated MOH $23,000 $24,000 Estimated Total Mach $2,500 $1,500 Hrs Predetermined Departmental OH rate 9.2 16 11 Job P Job Q fabrication OH allocated 2500*16 $40,000 2800*16 $44,800 10 Job P Job Q Moulding Oh allocated 3600*9.2 $33,120 2700*9.2 $24,840
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