Question

Required information (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 $13,000 $16,800 $29,800 Estimated variable manufacturing overhead per machine-hour $ 3.40 $ 2.60 Job P $25,000 $30, 600 Job $14,000 $12,300 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,900 1,800 4,700 2,000 2,100 4,100 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,

14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

Working : Estimated Total Fixed Manufacturing Overhead Estimated Total Variable Manufacturing Overhead Estimated Total Manufacturing Overhead Number of Machine Hours PreDetermined Departmental overhead rate Molding Fabrication $ 13,000 $ 16,800 $ 6,500 $ 5,100 $ 19,500 $ 21,900 2500 1500 $ 7.80 $ 14.60 Requirement (14) Particulars Job Q Direct Material Direct Labour Overhead Total Manufacturing Cost Add : Markup @ 80% Selling Price Job P $ 25,000 $ 14,000 $ 30,600 $ 12,300 $ 48,900 $ 46,260 $ 104,500 $ 72,560 $ 83,600 $ 58,048 $ 188,100 $ 130,608 Requirement (15) Cost of goods sold (Since No Beginning and Ending FG, Total MfG Cost is cost of goods sold) $ 177,060 Note : Do Comment for any further assistance