Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2521524 • 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):
::: assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
IMPORTANTT:::::::
::: assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
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.)
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 $ 4.10 Required information The following information applies to the questions displayed below. 15 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) Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 4,000 $14,750 17,850 $32,600 2,500 1,500 24 $3.30 4.10 Job P Job 0 $32,000 $17,500 $36,200 $15,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,600 2.500 6,100 2,700 2,800 5,500 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. 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.) Answer is not complete Job P Job Q Total price for the 251.775 Selling price per unitExplanation / Answer
Sweeten Company Molding Department Fabrication Department Estimated Total Manufacturing Overhead Variable Overhead(2500*3.30),for Molding department,(1500*$4.10) for Fabrication Department $ 8,250.00 $ 6,150.00 Fixed Overhead $ 11,500.00 $ 15,900.00 Total Manufacturing Overhead $ 19,750.00 $ 22,050.00 Predetermined Overhead Rate=($19750/2500) for Molding Department ,($22050/1500) for Fabrication Department $ 7.90 $ 14.70 Job P Job Q Direct Material $ 19,000.00 $ 11,000.00 Direct Labor $ 25,800.00 $ 9,900.00 Manufacturing Overhead=(3600*7.90+2500*14.7) for Job P,(2700*7.90+2800*14.70) $ 65,190.00 $ 62,490.00 Total Manufacturing Cost $ 109,990.00 $ 83,390.00 Markup %=(80% of Total Manufacturing cost) $ 87,992.00 $ 66,712.00 Total Selling Price $ 197,982.00 $ 150,102.00 Sales (Units) 20 30 Selling Price Per Unit $ 9,900.00 $ 5,000.00
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