Question

The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2.4) 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 nachine-hour Molding Fabrication Total 2,569 1,580 4,098 $10,000 $15,00 $25,000 5 1.40 $ 2.20 Job P $13, ece $21, Bee Jab 58, ade $7.500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Eee 2,300 Bee 9aa 2.768 Sweeten Company had no underapplied or averapplied manufacturing overhead costs during the month Required: For questions 18 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

Answer 1

1 Predetermined OH rate= $7.95MH 2 2 Particulars Job P JobQ Manufacturing Overhead Applied $ 18,285 $ 13,515 3 Total Manufacturing cost-Job P $ 52,285 4 Unit Product cost-Job P $ 2,614 5 Total Manufacturing cost-Job Q $ 29,015 6 Unit Product cost-Job P $ 967 7 Particulars Total Price for the Job Selling Price per Unit Job P $ 94,113 $ $ 4,706 $ JobQ 52,227 1,741 8 Cost of goods Sold= $81,300

wORKINGS:

Given, Molding Trimming $ OH costs 13,500 18,300 DLH 2,500 1,500 $ 1 Predetermined OH Rate- Total Overhead Cost Total Machine Hour $10,000+($1.40*2,500)+$15,000+(2.20*1,500) 2,500 + 1,500 MH $31,800 $7.95 MH 4,000 2 Particulars Job P Job Q Manufacturing Overhead Applied $ 18,285$ 13,515 [$7.95*2,300MH] [$7.95*1,700MH] 3 *Total Manufacturing cost = Direct Material + Direct Labor + Overhead Cost Particulars Job P Direct Material $ 13,000 Direct Labor $ 21,000 Overhead $ 18,285 Total Manufacturing cost 52,285 4 Unit Product cost= Total Manufacturing Cost / Total Units Particulars Job P Total Manufacturing cost $ 52,285 Total units produced 20 Unit Product cost 2,614

5 $ Particulars Direct Material Direct Labor Overhead Total Manufacturing cost $ Job Q 8,000 7,500 13,515 29,015 $ $ 6 Unit Product cost= Total Manufacturing Cost / Total Units Particulars Job Q Total Manufacturing cost $ 29,015 Total units produced 30 Unit Product cost $ 967 7 $ $ Particulars Total Manufacturing cost Markup - 80% Total Price for the Job Total units produced Selling Price per Unit Job P 52,285 $ 41,828 $ 94,113 $ 20 4,706 $ Job Q 29,015 23,212 52,227 30 $ $ 1,741 8 Cost of goods sold= Manufacturing cost of Job P + Job Q Cost of goods sold=$52,285+29,015 Cost of goods sold=$81,300.

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