Question

Ch 2 Foundational 15 Saved Help Save & Exit Submit Check my work 9 Required information The Foundational 15 (L02-1, LO2-2, LO2-3, LO2-4) [The following information applies to the questions displayed below.] Part 9 of 15 0.33 points 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): 8 01:30:32 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 $12,000 $16,200 $28,200 $ 2.20 $ 3.00 eBook Print Job P $21,000 $27,400 Job Q $12,000 $10,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total References 2,500 1,400 3,900 1,600 1,700 3,300 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 company's plant wide 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. 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 or both jobs when stated on a per unit basis assuming 20 units were produces for Job P and 30 units were produced for Job Q?

8. What was Sweeten Company's cost of goods sold for March?

9. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department?

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

12. If Job P included 20 Units, what was its unit product costs?

13. If Job Q included 30 units, what was its unit product cost?

14. Assume that Sweeten Company used cost-post pricing( and a markup percentage of 8-%A 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?

15. What was Sweeten Company's cost of goods sold for March?

Answer 1

1. Predetermined overhead rate

Predetermined overhead rate = Total Overhead cost / Total machine hours

Variable Overhead cost = (2,500 machine hours * $2.20) + (1,500 machine hours * $3.00) = $10,000

Fixed Overhead cost = $28,200

Total Overhead cost = $10,000 + $28,200 = $38,200

Predetermined overhead rate = $38,200 / 4,000 machine hours = $9.55 per machine hour

2. Manufacturing Overhead Applied

Job P = 3,900 machine hours * $9.55 per machine hour = $37,245

Job Q = 3,300 machine hours * $9.55 per machine hour = $31,515

3. Total manufacturing cost of Job P

Particulars	$
Direct materials	21,000
Direct Labor cost	27,400
Manufacturing overhead cost	37,245
Total Manufacturing Cost	85,645

4. Unit Product cost of Job P

Unit Product cost = Total Manufacturing cost / Units

Unit Product cost = $85,645 / 20 Units = $4,282.25

5. Total manufacturing cost of Job Q

Particulars	$
Direct materials	12,000
Direct Labor cost	10,700
Manufacturing overhead cost	31,515
Total Manufacturing Cost	54,215

6. Unit Product cost of Job Q

Unit Product cost = Total Manufacturing cost / Units

Unit Product cost = $54,215 / 30 Units = $1,807.17

7. Selling Price

Job P

Particulars	$
Total Manufacturing cost	85,645
Add: Markup ($85,645 * 80%)	68,516
Sales Price	154,161

Selling price per unit = $154,161 / 20 Units = $7,708.05

Job Q

Particulars	$
Total Manufacturing cost	54,215
Add: Markup ($54,215 * 80%)	43,372
Sales Price	97,587

Selling price per unit = $97,587 / 30 Units = $3,252.90

8. Cost of goods sold

Particulars	$
Cost - Job P	85,645
Cost - Job Q	54,215
Total Cost of goods sold	139,860

9. Departmental Predetermined overhead rate

Departmental predetermined overhead rate = Departmental overhead cost / Departmental machine hours

Molding Department

Departmental overhead cost = (2,500 machine hours * $2.20) + $12,000 = $17,500

Departmental predetermined overhead rate = $17,500 / 2,500 machine hours = $7.00 per machine hour

Fabrication Department

Departmental overhead cost = (1,500 machine hours * $3.00) + $16,200 = $20,700

Departmental predetermined overhead rate = $20,700 / 1,500 machine hours = $13.80 per machine hour

10. Manufacturing Overhead Applied

Molding Department

Job P = 2,500 machine hours * $7.00 = $17,500

Job Q = 1,600 machine hours * $7.00 = $11,200

11. Manufacturing Overhead Applied

Fabrication Department

Job P = 1,400 machine hours * $13.80 = $19,320

Job Q = 1,700 machine hours * $13.80 = $23,460

12. Unit Product Cost

Job P

Particulars	$
Direct materials	21,000
Direct Labor cost	27,400
Manufacturing overhead cost ($17,500+$19,320)	36,820
Total Manufacturing Cost	85,220

Unit Product cost = $85,220 / 20 Units = $4,261 per unit

13. Unit Product Cost

Job Q

Particulars	$
Direct materials	12,000
Direct Labor cost	10,700
Manufacturing overhead cost ($11,200+$23,460)	34,660
Total Manufacturing Cost	57,360

Unit Product cost = $57,360 / 30 Units = $1,912 per unit

14. Selling Price

Job P

Particulars	$
Total Manufacturing cost	85,220
Add: Markup ($85,220 * 80%)	68,176
Sales Price	153,396

Selling price per unit = $153,396 / 20 Units = $7,669.80

Job Q

Particulars	$
Total Manufacturing cost	57,360
Add: Markup ($57,360 * 80%)	45,888
Sales Price	103,248

Selling price per unit = $103,248 / 30 Units = $3,441.60

15. Cost of goods sold

Particulars	$
Cost - Job P	85,220
Cost - Job Q	57,360
Total Cost of goods sold	142,580

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