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):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	12,000		$	16,200		$	28,200
Estimated variable manufacturing overhead per machine-hour	$	2.20		$	3.00

	Job P			Job Q
Direct materials	$	21,000		$	12,000
Direct labor cost	$	27,400		$	10,700
Actual machine-hours used:
Molding		2,500			1,600
Fabrication		1,400			1,700
Total		3,900			3,300

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

12.If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

- 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.)

-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.)

-What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

	Molding	Fabrication
Estimated total fixed manufacturing overhead	12000	16200
Estimated variable manufacturing overhead	5500	4500
Total manufacturing overhead	17500	20700
Divide by Total machine-hours used	2500	1500
Departmental predetermined overhead rates	7.00	13.80
12
	Job P
Direct materials	21000
Direct labor cost	27400
Overhead applied:
Molding	17500	=2500*7
Fabrication	19320	=1400*13.8
Total cost	85220
Divide by units	20
Unit product cost Job P	4261
13
	Job Q
Direct materials	12000
Direct labor cost	10700
Overhead applied:
Molding	11200	=1600*7
Fabrication	23460	=1700*13.8
Total cost	57360
Divide by units	30
Unit product cost Job Q	1912
14
	Job P	Job Q
Total cost	85220	57360
Add: Markup @ 80%	68176	45888
Total selling price for the job	153396	103248
Divide by units	20	30
Selling price per unit	7670	3442
15
Total cost Job P	85220
Total cost Job Q	57360
Cost of goods sold for March	142580