Question

Required information (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 Fabrication Total 2,500 1,500 4,000 $14,500 $17,700 $32,200 $ 3.20 $ 4.00 Job P $31,000 $35, 400 Job Q $17,000 $14,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,500 2,400 5,900 2,600 2,700 5,300 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.

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

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? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

Departmental Predetermined overhead rate
Molding	9.00	=3.20+(14500/2500)
Fabrication	15.80	=4+(17700/1500)
10
Manufacturing overhead applied:
Job P	31500	=3500*9
Job Q	23400	=2600*9
11
Manufacturing overhead applied:
Job P	37920	=2400*15.80
Job Q	42660	=2700*15.80
12
	Job P
Direct materials	31000
Direct labor cost	35400
Manufacturing overhead applied	69420	=31500+37920
Total manufacturing cost Job P	135820
Divide by units	20
Unit product cost Job P	6791
13
Direct materials	17000
Direct labor cost	14700
Manufacturing overhead applied	66060	=23400+42660
Total manufacturing cost Job Q	97760
Divide by units	30
Unit product cost Job Q	3259
14
	Job P	Job Q
Total manufacturing cost	135820	97760
Add: Markup @ 80%	108656	78208
Total price for the job	244476	175968
Divide by units	20	30
Selling price per unit	12224	5866
15
Cost of goods sold for March	233580	=135820+97760