Question

Réquirèd 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): Molding Fabrication Total 4,000 $25,000 Estimated total machine-hours used 2,500 1,500 $15,000 $ 2.20 Estimated total fixed manufacturing overhead $10,000 Estimated variable manufacturing overhead per machine-hour 1.40 Job P Job Q Direct materials $13,000 $21,000 $8,000 Direct labor cost $7,500 Actual machine-hours used: Molding Fabrication 1,700 800 600 900 2,300 1,700 Total 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.

13. 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.)

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.)

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

Answer 1

13) calculate unit product cost

	Job Q
Direct material	8000
Direct labor	7500
Molding Overhead (800*5.40)	4320
Fabrication overhead (900*12.20)	10980
Total Cost	30800
Unit product cost (30800/30)	1027

14) Calculate selling price

	Job P	Job Q
Direct material	13000	8000
Direct labor	21000	7500
Molding overhead	9180	4320
Fabrication overhead	7320	10980
Total Cost	50500	30800
Markup	40400	24640
Selling price	90900	55440
Selling price per unit	4545	1848

15) Cost of goods sold = 50500+30800 = 81300