Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2336304 • 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.
10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)
12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)
13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
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? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)
Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 10,750 $ 15,450 $ 26,200 Estimated variable manufacturing overhead per machine-hour $ 1.70 $ 2.50Explanation / Answer
Predetermined overhead rate Molding = 1.7+(10750/2500)= $6 Predetermined overhead rate Faabrication = 2.5+(15450/1500)= $12.8 10 Job P 12000 =2000*6 Job Q 6600 =1100*6 11 Job P 11520 =900*12.8 Job Q 15360 =1200*12.8 12 Job P Direct materials 16000 Direct labor cost 23400 Overhead 23520 =12000+11520 Total cost 62920 Divided by units 20 Unit product cost 3146 13 Job Q Direct materials 9500 Direct labor cost 8700 Overhead 21960 =6600+15360 Total cost 40160 Divided by units 30 Unit product cost 1339 14 Job P Job Q Total costs 62920 40160 Add: Markup 50336 32128 Selling price 113256 72288 Divided by units 20 30 Selling price per unit 5663 2410 15 Cost of goods sold for March = 62920+40160= $103080
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