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	$	10,000		$	15,000		$	25,000
Estimated variable manufacturing overhead per machine-hour	$	1.40		$	2.20

	Job P			Job Q
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual machine-hours used:
Molding		1,700			800
Fabrication		600			900
Total		2,300			1,700

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.

5. What was the total manufacturing cost assigned to Job Q?

6. If Job Q included 30 units, what was its unit product cost?

7. 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 answers to nearest whole dollar.)

8. What was Sweeten Company’s cost of goods sold for March?

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

12. If Job P included 20 units, what was its unit product cost?

13. If Job Q included 30 units, what was its unit product cost?

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?

15. What was Sweeten Company’s cost of goods sold for March?

Answer 1

Here I am answer Question 1 to Question 8. You need answers for Question 5 to Question 8 but you need to understand whole work and concept. so i am providing answers from 1 to 8

1. Calculation of Plantwide Predetermined Overhead Rate: Predetermined Overhead Rate = Estimated Fixed Manufacturing Overhead/Estimated Machine Hrs = $25,000/4,000 = $6.25 2. Calculation of Manufacturing Overheads applied to Job P and Job Q: Job Q Job P Variable Manufacturing Overhead - Molding (1700x$1.40);(800x$1.40) 2,380.00 $ 1,120.00 Variable Manufacturing Overhead - Fabrication (600x$2.20);(900x$2.20) Fixed Manufacturing Overhead (2300x$6.25;1700x$6.25) Total Manufacturing Overheads applied 2$ 1,320.00 $ 1,980.00 14,375.00 $ 18,075.00 $ 2$ 2$ 10,625.00 13,725.00

3. Calculation of Total Manufacturing Cost assigned to Job P: Job P 13,000.00 21,000.00 Direct Materials Direct Labor Cost Total Manufacturing Overhead Applied (See Calculation in Point 2) Total Manufacturing Cost Assigned to Job P 18,075.00 52,075.00 $ 4. If Job P includes 20 Units, Calculation of Unit Product Cost: Total Manufacturing Cost Assigned to Job P 52,075.00 Number of Units Job P includes 20 Unit Product Cost ($52,075 / 20 Units) $ 2,603.75 %24

5. Calculation of Total Manufacturing Cost assigned to Job Q: Job Q 8,000.00 7,500.00 Direct Materials Direct Labor Cost $ Total Manufacturing Overhead Applied (See Calculation in Point 2) Total Manufacturing Cost Assigned to Job Q 2$ 13,725.00 29,225.00 2$ 6. If Job Q includes 30 Units, Calculation of Unit Product Cost: Total Manufacturing Cost Assigned to Job Q 29,225.00 Number of Units Job P includes 30 Unit Product Cost ($52,075 / 20 Units) $ 974.17

7. If Company using Cost Plus Pricing; Calculation of Selling Price : Job Q Job P 2$ Total Manufacturing Cost Assigned Add: Markup (80% of Manufacturing Cost) $52,075 x 80%; $29,225 x 80% 52,075.00 $ 29,225.00 41,660.00 $ 93,735.00 $ 23,380.00 52,605.00 2$ Total Sale Value Total Units 20 30 2$ 2$ Selling Price Per Unit 1,753.50 4,686.75 8. Calculation of Cost of Goods Sold: Cost of Goods Sold = Units Sold x Unit Product Cost Given that, Units in both Jobs P and Q are sold. So the cost of goods sold will be total manufacturing cost of Job P and Job Q. So, Cost of Goods Sold = $52,075 + $29,225 = $81,300.00