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 Molding Fabrication Total 2,500 1,500 4,000 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 800 900 600 2,300 1.700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

Cost of goods sold

81300

Workings:
Estimated variable manufacturing overhead	6800	=(2500*1.40)+(1500*2.20)
Estimated total fixed manufacturing overhead	25000
Estimated total manufacturing overhead	31800
Divide by Estimated total machine-hours used	4000
Plantwide predetermined overhead rate	7.95	per MH
	Job P	Job Q
Actual machine-hours used	2300	1700
X Plantwide predetermined overhead rate	7.95	7.95
Manufacturing overhead applied	18285	13515
	Job P	Job Q
Direct materials	13000	8000
Direct labor cost	21000	7500
Manufacturing overhead applied	18285	13515
Total manufacturing cost	52285	29015
Cost of goods sold for March	81300	=52285+29015