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	$	14,750		$	17,850		$	32,600
Estimated variable manufacturing overhead per machine-hour	$	3.30		$	4.10

	Job P			Job Q
Direct materials	$	32,000		$	17,500
Direct labor cost	$	36,200		$	15,100
Actual machine-hours used:
Molding		3,600			2,700
Fabrication		2,500			2,800
Total		6,100			5,500

weeten 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.

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

Answer 1

Molding overhead rate = (14750/2500+3.3) = 9.20 per hour

Fabrication overhead rate = (17850/1500+4.10) = 16 per hour

Calculate cost

	Job P	Job Q
Direct material	32000	17500
Direct labor	36200	15100
Molding overhead	33120	24840
Fabrication overhead	40000	44800
Total cost	141320	102240

Cost of goods sold = 141320+102240 = $243560