Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2425747 • Letter: S
Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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):
1.Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2.Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. Prepare the journal entry to apply manufacturing overhead costs to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4. Prepare the journal entry to transfer costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
5.Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.
Prepare a schedule of cost of goods sold.
7.Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Please show me hoe did you get the answers. Thank you so much
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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):
Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Direct Material Inventory Dr. 22000 To Accounts Payables / Cash 22000 (Purchase of raw material) 2 WIP - Job P Dr. 13000 WIP - Job Q Dr. 8000 To Direct Material Inventory 21000 (Issue of raw material for jobs) Answer 2. Total Estimated Manufacturing Overhead = Fixed Overhead + Variable Overhead Total Estimated Manufacturing Overhead = $10000 + $1 X 2000 Hrs = $12000 Predetermined Manufacturing Overhead Rate per direct labour hr = $12000 / 2000 hrs = $6 per hr. Manufacturing Overhead Applied Job P - $6 X 1400 hrs = $8400 Job Q - $6 X 500 hrs = $3000 Answer 3. Direct Labour Hourly Rate = $21000/ 1400 = $15 per direct Labour (If we calculate with Job Q, we will get the same answer for Direct labour hourly rate) Answer 4-a. Unit Product Cost of Job P = (13000 (Direct Material) + 21000 (Direct Labour) + $6 X 1400 (Manufacturing overhead)) / 20 Units Unit Product Cost of Job P = $2120 per Unit Answer 4-b. Calculation of Manufacturing cost of Job Q Direct Material 8,000 Direct Labor 7,500 Manufacturing Overhead - $ 6 X 500 hrs 3,000 Total Manufacturing Costs 18,500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.