Question

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

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 $14,750 $17,850 $32,600 $ 3.30 $ 4.10 Job P $32,000 $36,200 Job 2 $17,500 $ 15,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,600 2,500 6,100 2,700 2,800 5,500 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

	Molding Department	Fabrication department
Estimated total fixed manufacturing overhead	14750	17850
(/) Estimated total machine hours used	2500	1500
	5.90	11.90
(+) Estimated variable manufacturing overhead per machine hour	3.30	4.10
Predetermined overhead rate	9.20	16.00

	Job P	Job Q
Manufacturing overhead applied [ Molding department machine hours used * Molding department predetermined overhead rate ]	33120	24840

	Job P	Job Q
Manufacturing overhead applied [ Fabrication department machine hours used * Fabrication department predetermined overhead rate ]	40000	44800

	Job P
Direct materials	32000
Direct labor cost	36200
Manufacturing overhead applied [ 33120+40000 ]	73120
Product cost	141320

Required 13 :
	Job Q
Direct materials	17500
Direct labor cost	15100
Manufacturing overhead applied [ 24840 + 44800 ]	69640
Product cost	102240
(/) No. of units	30
Unit product cost	3408

Required 14 :
	Job P	Job Q
Product cost	141320	102240
(+) Markup @ 80%	113056	81792
Total price for the job	254376	184032
(/) No. of units	20	30
Selling price per unit	12719	6134

Required 15 :
Cost of goods sold = Total product costs of Jobs sold = 141320 + 102240 =	243560