Question

[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 machine-hour Molding Fabrication Total 2,500 1,500 4,000 $12,250 $16,350 $28,600 $ 2.30 $ 3.10 Job P $22,000 $28,209 Job O $12,500 $11,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,609 1,500 4,100 1,700 1,800 3,500 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month,

Answer 1

Requirement 8:

Plantwide predetermined overhead rate = [(2500*$2.3) + (1500*$3.1) + 28,600] / 4,000 hours

= $ 9.75 per MH

	Job P	Job Q
Direct Material	22,000	12,500
Direct Labor	28,200	11,100
Overhead	(4,100*$9.75) = 39,975	(3,500*$9.75 ) = 34,125
Total	90,175	57,725

Cost of Goods Sold = $90,175 + $57,725

= $ 147,900

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