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 overhead machine-hour Molding Fabrication Total 2,500 1,500 4,000 $12,750 $16,650 $29,400 $ 2.50 $ 3.30 Job P $24,000 $29,800 Job $13,500 $11,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,800 1,700 4,500 1,900 2,000 3,900 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

Departmental overhead rate :

Molding department = 12750/2500+2.50 = 7.60 per hour

Fabrication department = 16650/1500+3.30 = 14.40 per hour

11) Manufacturing overhead applied

	Job P	Job Q
Fabrication department	1700*14.40 = 24480	2000*14.40 = 28800

12) Unit product cost

	Job P
Direct material	24000
Direct labor	29800
Molding department overhead (2800*7.60)	21280
Fabrication department overhead	24480
Total Cost	99560
Unit	20
Unit product cost	4978

13) Unit product cost

	Job Q
Direct material	13500
Direct labor	11900
Molding department overhead (1900*7.60)	14440
Fabrication department overhead	28800
Total Cost	68640
Unit	30
Unit product cost	2288

14) Total price

	Job P	Job Q
Direct material	24000	13500
Direct labor	29800	11900
Molding department overhead	21280	14440
Fabrication department overhead	24480	28800
Total Cost	99560	68640
Total price	99560*1.8 = 179208	68640*1.8 = 123552
Selling price per unit	8960	4118

15) Cost of goods sold = 99560+68640 = 168200