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 $21,800 Job $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,380 800 903 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

Calculation of Unit Product Cost and Selling Price Per Unit Particulrs Job P Job Q. Direct Materials $ 13,000 $ 8,000 Direct Labour $ 21,000 $ 75,000 Manufacturing Oh cost $ 22,655 $ 16,745 Total Manufacturing Cost (a) $ 56,655 $ 99,745 No of Units (b) 20 30 Unit Product Cost (a/b). $ 2,832.75 $ 3,324.83 Total Price For the Job (Round off) $ 2,833 $ 3,325 Markup Price @ 80% $ 2,266.20 $ 2,659.87 Selling Price $ 5,099 $ 5,985 7A 7B Working Notes Estimated Total Mfg OH (1) Total Machine Hours(2) Plantwide Fixed Mfg OH rate (1/2) Add: Variable mfg OH Plantwide Predetermined OH per MH 25000 4000 6.25 3.6 9.85 Manufacturing Oh cost $ 22,655 $ 16,745 (2300*9.85) (1700*9.85) Kindly Comment down for any clarifications/ queries and please upvote.