Question

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 $14,250 $17,550 $31,800 $ 3.10 $ 3.90 Job P $30,000 $34,600 Jobg $16,500 $14,300 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,400 2,300 5,700 2,500 2,600 5,100 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.

QUESTION #12: a. If Job P included 20 units, what was its unit product cost? If Job Q included 30 units, what was its unit product cost?

13.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?

What was Sweeten Company’s cost of goods sold for March?

Answer 1

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Answer 9
Calculation of predetermined departmental OH Rate	Molding	Fabrication	Note
Machine Hours	2,500.00	1,500.00	A
Fixed Manufacturing overhead	14,250.00	17,550.00	B
Predetermined Departmental Fixed OH Rate	5.70	11.70	C=B/A
Variable OH Rate	3.10	3.90	D
Predetermined Departmental OH Rate	8.80	15.60	E=C+D
Overhead applied- Molding	Job P	Job Q	Note
Machine hours used- Molding	3,400.00	2,500.00	F
Predetermined Plant wide OH Rate	8.80	8.80	See E
Overhead applied	29,920.00	22,000.00	G=F*E
Overhead applied- Fabrication	Job P	Job Q
Machine hours used- Fabrication	2,300.00	2,600.00	H
Predetermined Plant wide OH Rate	15.60	15.60	See E
Overhead applied	35,880.00	40,560.00	I=H*E
Answer 12
Manufacturing cost assigned to Job P	Amount $	Note
Direct Materials	30,000.00
Direct Labor	34,600.00
Overhead applied- Molding	29,920.00	See G
Overhead applied- Fabrication	35,880.00	See I
Manufacturing cost assigned to Job P	130,400.00	J
Number of units	20.00	K
Unit product cost for Job P	6,520.00	L=J/K
Manufacturing cost assigned to Job Q	Amount $
Direct Materials	16,500.00
Direct Labor	14,300.00
Overhead applied- Molding	22,000.00	See G
Overhead applied- Fabrication	40,560.00	See I
Manufacturing cost assigned to Job Q	93,360.00	M
Number of units	30.00	N
Unit product cost for Job Q	3,112.00	O=M/N
Answer 13	Job P	Job Q	Note
Unit product cost	6,520.00	3,112.00	S= See L, O
Mark up at 80%	5,216.00	2,489.60	T=S*80%
Selling price	11,736.00	5,601.60	U=S+T
Cost of goods sold	223,760.00	V=J+M