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	$	11,250		$	15,750		$	27,000
Estimated variable manufacturing overhead per machine-hour	$	1.90		$	2.70

	Job P			Job Q
Direct materials	$	18,000		$	10,500
Direct labor cost	$	25,000		$	9,500
Actual machine-hours used:
Molding		2,200			1,300
Fabrication		1,100			1,400
Total		3,300			2,700

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. 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. Round your final answer to nearest whole dollar.)

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

Answer 1

13)	Job Q
	Particulars			Amount
	Materials			$ 10,500.00
	Labor			$   9,500.00
	OH
	Molding	(1300 x $ 6.4)		$   8,320.00
	Fabrication	(1400 x $ 13.2)		$ 18,480.00
	Total Manu. Cost			$ 46,800.00
	No. of units			30
	Unit product cost			$   1,560.00

14)	Particulars			Job P	Job Q
	Materials			$   18,000.00	$   10,500.00
	Labor			$   25,000.00	$     9,500.00
	OH
	Molding			$   14,080.00	$     8,320.00
	Fabrication			$   14,520.00	$   18,480.00
	Total Manu. Cost			$   71,600.00	$   46,800.00
	Mark up		-80%	$   57,280.00	$   37,440.00
	Selling price			$ 128,880.00	$   84,240.00
	No. of units			20	30
	Selling price per unit			$     6,444.00	$     2,808.00

15)

Cost of Goods sold

$ 118,400.00

($ 71600 + $ 46800)

Workings:

Particulars			Molding	Fabrication
Fixed Manu. OH cost			$   11,250.00	$   15,750.00
Machine Hours			2500	1500
Fixed OH rate per hour			$             4.50	$           10.50
Variable OH rate per hour			$             1.90	$             2.70
Predetermined OH rate			$             6.40	$           13.20