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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,500 1,500 4,000 $10,750 $15,450 $26,200 $ 1.70 $ 2.50 Job P $16,000 $23,400 Job Q $9,500 $8,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,000 900 2,900 1,100 1,200 2,300 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.

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

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

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

10.

Predetermined overhead rate :

Molding = $10,750/2,500 + $1.70 = $6 per machine hour

Fabrication = $15,450/1,500 + $2.50 = $12.8 per machine hour

Manufacturing overhead applied to from Molding department:

Job P = 2,000*$6 = $12,000

Job Q = 1,100*$6 = $6,600

11.

Manufacturing overhead applied to from Fabrication department:

Job P = 900*$12.8 = $11,520

Job Q = 1,200*$12.8 = $15,360

12.

Job P
Direct material	$16,000
Direct labor	23,400
Overhead applied:
Molding	12,000
Fabrication	11,520
Total manufacturing costs	$62,920
Total units	20
Unit product cost	$3,146

13.

Job Q
Direct material	$9,500
Direct labor	8,700
Overhead applied:
Molding	6,600
Fabrication	15,360
Total manufacturing costs	40,160
Total units	30
Unit product cost	$1,339

14.

	Job P	Job Q
Unit product cost	$3,146	$1,339
Add: Markup @80%	2,517	1,071
Selling price	$5,663	$2,410

15.

Cost of goods sold = $62,920+40,160 = $103,080