Question

5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

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.

6. 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.)

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 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 answers to nearest whole dollar.)

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

Answer 1

	Molding	Fabrication	Total
Estimated total machine hours used	2500	1500	4000
(*) Estimated variable manufacturing overhead per machine hour	3.30	4.10
Estimated total variable manufacturing overhead	8250	6150	14400
Estimated total fixed manufacturing overhead	14750	17850	32600
Estimated total manufacturing overhead	23000	24000	47000

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 47000 / 4000 =

11.75

per MH

	Job P	Job Q
Total actual machine hours used	6100	5500
Plantwide predetermined overhead rate	11.75	11.75
Manufacturing overhead applied	71675	64625

	Job P
Direct materials	32000
Direct labor cost	36200
Manufacturing overhead applied	71675
Total manufacturing cost	139875

Required 5 :
	Job Q
Direct materials	17500
Direct labor cost	15100
Manufacturing overhead applied	64625
Total manufacturing cost	97225

Required 6 :
	Job Q
Total manufacturing cost	97225
(/) No. of units	30
Unit product cost	3241

Required 7 :
	Job P	Job Q
Total manufacturing cost	139875	97225
(+) Markup @ 80%	111900	77780
Total price for the job	251775	175005
(/) No. of units	20	30
Selling price per unit	12589	5834

Required 8 :
Cost of goods sold = Total manufacturing costs of Jobs sold = 139875 + 97225 =	237100