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

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.

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?

3. What was the total manufacturing cost assigned to Job P?

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

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?

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?

Answer 1

Estimated total manufacturing overhead = Fixed overhead + Variable overhead = $32600 + ($3.30 x 2500) + ($4.10 x 1500) = $32600 + $8250 + $6150 = $47000

Plantwide predetermined overhead rate = Estimated total manufacturing overhead/Estimated total machine-hours used = $47000/4000 = $11.75 per MH

2.

	Job P	Job Q
Manufacturing overhead applied	$             29,375	$             17,625
	(2500 x $11.75)	(1500 x $11.75)

3. Total manufacturing cost assigned to Job P: $97575

	Job P
Direct materials	32000
Direct labor	36200
Manufacturing overhead applied	29375
Total manufacturing cost $	97575

4. Unit product cost of Job P = $97575/20 = $4878.75

Kindly round off the unit product cost as required since no instructions have been provided with the question regarding rounding off.

5. Total manufacturing cost assigned to Job Q: $50225

	Job Q
Direct materials	17500
Direct labor	15100
Manufacturing overhead applied	17625
Total manufacturing cost $	50225

Per HOMEWORKLIB RULES the first 4 parts are answerable. Please post the remaining separately. Thank you.