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 $10,000 $15,000 $ 25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job o $8,000 $ 7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 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. Foundational 2-13 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) Unit product cost $ 96703

Answer 1

13)	Unit product cost		=	$         1,027	($ 30800 / 30)
15)	Cost of Goods sold		=	$ 81,300.00	($ 50500 + $ 30800)

Workings:

Computation of departmental overhead rates
Particulars				Molding	Fabrication
Estimated total fixed manufacturing OH				$ 10,000.00	$ 15,000.00
Estimated total machine hours				2500	1500
Fixed manufacturing OH per machine hour				$           4.00	$        10.00
Variable manufacturing OH per machine hour				$           1.40	$           2.20
Departmental overhead rates				$           5.40	$        12.20

Computation of manufacturing cost
Particulars			Job P	Job Q
Direct Materials			$ 13,000.00	$   8,000.00
Direct Labor			$ 21,000.00	$   7,500.00
Manufacturing OH:
Molding			$   9,180.00	$   4,320.00
Fabrication			$   7,320.00	$ 10,980.00
Total manufacturing cost			$ 50,500.00	$ 30,800.00

Please let me know if you find this incorrect. Thank you