Question

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. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred 12,800 1.10 3,200 15,600 $ Direct materials Direct labor cost Actual direct labor-hours worked Job P Job Q $ 16,100 $ 9,200 $ 39,100 $ 10,200 2,300 600

Answer 1

Estimated Total Fixed Manufactruing Overhead Estimated Varaible MOH per Direct Labor Hour Estimated Total Direct Labor Hours worked Total Actula Manufacturing Overhead 12800 1.1 3200 15600 ob o 16100 9200 39100 10200 2300 600 Job P Direct Material Direct Labor Cost Actula Direct Labor Hours Worked 1) Predetermined overhead rate Variable Overhead Rate ADD: Fixed overhead Rate = (12800/3200) Answer Predetermined overhead rate Overhead Apllied to Each job | Job P 2300 * Job Q 600 * 1.1 4 5.10 Per DLH 2) 5.1 5.1 11730 3060

10) 66930 11) T Account of Work in Process Work in Process Beginning Bal Material (16100+9200) 25300 Direct Labor(39100+10200) 49300 MOH (11730+3060) 14790 End. Bal 22460 Schedue of Cost of Goods Sold Finished Good Invenotry, Beginning ADD: Cost of Goods Manufactured Cost of Goods Available for Sale LESS: Finidhed goods Inventory, Ending Unadjusted Cost of Goods Sold Journal Entry to Transfer Cost from Finished goods to Cost of Goods Sold Cost of Goods Sold 66930 Finished Goods 66930 66930 66930 12) 66930

13) 15600 14790 810 14) | 810 Over appied or under applied overheads Actula Overheads Less: Applied Overeheads (2300+600)*5.1 Overheads under Applied (15600-14790) Journal Entry for Overehaads Under Applies Cost of Goods Sold 810 Manufacturing Overhead Assume Job 30 Units Ech sell for 2,800, Selling and Admin OH 11,500 Absorption costing income Statement Sales = (30*2800) LESS: Cost of Goods Sold Gross Margin Less: Selling and Administrtive OH Net income 15) 84000 66930 17070 11500 5570