Question

question 9

Required information The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4) [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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabricatior 2,500 1,500 $ 13,750 $17,250 $ 2.90 $ 3.70 Job P $ 28,000 33,000 Job O $15,500 $13,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,200 2,100 2300 2,400 5,300 4,700 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.

Answer 1

9) Molding overhead rate = (13750/2500+2.90) = 8.40 per MH

Fabrication overhead rate = (17250/1500+3.70) = 15.20 per MH

10) Overhead applied to molding department

	Job P	Job Q
Molding department	3200*8.40 = 26880	2300*8.40 = 19320

11) Overhead applied to Fabrication department

	Job P	Job Q
Fabrication department	2100*15.20 = 31920	2400*15.20 = 36480

12) Unit product cost of Job P

	Job P
Direct material	28000
Direct labor	33000
Molding overhead	26880
Fabrication overhead	31920
Total product cost	119800
Unit	20
Unit product cost	5990

13) Unit product cost of Job Q

	Job Q
Direct material	15500
Direct labor	13500
Molding overhead	19320
Fabrication overhead	36480
Total product cost	84800
Unit	30
Unit product cost	2827

14) Selling price of Job

	Job P	Job Q
Direct material	28000	15500
Direct labor	33000	13500
Molding overhead	26880	19320
Fabrication overhead	31920	36480
Total product cost	119800	84800
Selling price of Job	215640	152640
Selling price per unit	10782	5088

15) Cost of goods sold = 119800+84800 = 204600