Question

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. 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): $ $ Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred 12,800 1.10 3,200 15,600 $ Direct materials Direct labor cost Actual direct labor-hours worked Job P Job Q $ 16,100 $ 9,200 $ 39,100 $ 10,200 2,300 600

Answer 1

1) Overhead rate = (12800/3200)+1.1 = 5.10 per hour

Journal entry

Date	account and explanation	Debit	Credit
	Work in process (2900*5.10)	14790
	Manufacturing overhead		14790
	(To record overhead applied)

2) Schedule of cost of goods manufactured

Beginning work in process		0
Direct material used	25300
Direct labor	49300
Manufacturing overhead	14790
Total manufacturing cost		89390
Total cost of work in process		89390
Less: Ending work in process		-22460
Cost of goods manufactured		66930

3) Journal entry

Date	account and explanation	Debit	Credit
	Finished goods	66930
	Work in process		66930
	(To record cost of goods completed)