Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] 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 $10,000 $15,000 $25,000 2,500 1,500 $ 1.40 2.20 Job P $13,000 $21,000 Job Q $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 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 8. What was Sweeten Company's cost of goods sold for March? (Do not round intermediate calculations.) Cost of goods sold

Explanation / Answer

manufacturing cost per machine hour = (10000+15000+(2500*1.40)+(1500*2.20))/4000 = 7.95

manufacturing cost for job P = 13000+21000+(7.95*2300) = 52285

manufacturing cost for job Q = 8000+7500+(7.95*1700) = 29015

Cost of goods sold =52285+29015 = 81300

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