Question

The Foundational 15 (L02-1, 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): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $10,000 $15,000 $25,000 Estimated variable manufacturing overhead per machine-hour $ 2.20 $ 1.40 Job P $13,000 $21,000 Job $8,000 $ 7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2.300 800 900 1,700 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.

1. what was the companys plantwide predetermined overhead rate?

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.

8. what was Sweeten Companys cost of goods sold forarch?

Answer 1

1 Predetermined OH rate= $7.95MH 2 Particulars Manufacturing Overhead Applied Job P Job Q 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 JobQ 94,113 $ 52,227 4,706 $ 1,741 8 Cost of goods Sold= $81,300

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Workings:

DLH Given Molding Trimming $ $ OH costs 13,500 18,300 2,500 1,500 1 Predetermined OH Rate- $ 31,800 $ 7.95 MH Total Overhead Cost Total Machine Hour $10,000+($1.40*2,500)+$15,000+(2.20*1,500) 2,500 + 1,500 MH 4,000 Particulars Manufacturing Overhead Applied 2 $ Job P Job Q 18,285 $ 13,515 [$7.95*2,300MH] [$7.95*1,700MH] 3 13,000 *Total Manufacturing cost = Direct Material + Direct Labor + Overhead Cost Particulars Job P Direct Material $ 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 $ $ S $ Job 8,000 7,500 13,515 29,015 6 Unit Product cost= Total Manufacturing Cost / Total Units Particulars JobQ Total Manufacturing cost $ 29,015 Total units produced 30 Unit Product cost $ 967 7 Job P Particulars Total Manufacturing cost Markup - 80% Total Price for the Job Total units produced Selling Price per Unit $ $ $ 52,285$ 41,828 $ 94,113 $ 20 4,706 $ JobQ 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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