Question

Required information 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 fall data and questions relate to the month of March Estimated total machine-hours used Estrated total fixed manufacturing overhead, Estimated variable manufacturing overhead per nachine-hour Molding Fabrication total 2,50 1, Saa 4. aaa $ia, aaa $15,000 $25, $ 1.40 $ 2.20 Job P $13,000 $21,00 Job O $8,eee $7,5ea Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1.700 911 Sweeten Company had no underapplied or overapplied 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) Estimated fixed overhead cost Estimated machine hours Predetermined fixed overhead rate per machine hour Add: Variable overhead rate per machine hour Predetermined overhead rate per machine hour $25,000 ($10000+ $15000] 4,000 [2500 + 1500] $6.25 ($25000 / 4000 MHs] $3.60 ($1.40 + $2.20] $9.85 2) Molding department's machine hours used Fabrication department's machine hours used Total machine hours used by each job Job P 1,700 600 2,300 Job P 800 900 1,700 Overhead cost applied $22,655 $16,745 [Overhead cost applied to Job P = 2300 MHS x $9.85 = $22655; Job P = 1700 MHs x $9.85 = $16745] 3&5) Direct materials Direct labor Overhead cost applied Total manufacturing cost 3) Job P 5) Job Q $13,000 $8,000 $21,000 $7,500 $22,655 $16,745 [Ref: Part-2] $56,655 $32,245

4&6) 4) Job P 6) Job Q Total manufacturing cost $56,655 $32,245 [Ref: Part-3 & 5] Divided by # of units produced 20 30 Unit product cost $2,833 $1,075 [Unit product cost of Job P = $56655 / 20 units = $2833; Job Q = $32245 / 30 units = $1075] 7) Total selling price = Total manufacturing cost x (1 + Markup percentage on cost) Job P Job Q Total manufacturing cost $56,655 $32,245 [As calculated above] Markup percentage on cost 80% 80% Total price for the job $101,979 $58,041 ($56655 X (1+80%); = $101979; $322450 x (1+80%) = $58041] Number of units sold 20 30 Selling price per unit $5,099 $1,935 [Selling price per unit of Job P = $101979 / 20 units = $5099; Job Q = $58041 / 30 units = $1935] 8) Cost of goods sold - Job P $56,655 [Ref: Part-6] Cost of goods sold - Job Q $32,245 [Ref: Part-6] Sweeten Company's cost of goods sold for March $88,900 ($56655 +$322450]