Question

Required information The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4] [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 2,500 $11,250 $ 1.90 Fabrication 1,500 $15,750 $ 2.70 Total 4,000 $27,000 Job P $18,000 $25,000 Job $10,500 $ 9,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,200 1,100 3,300 1,300 1,400 2,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.

Answer 1

10 Predetermined OH rate= $8.95MH 11 Particulars Manufacturing Overhead Applied $ Job P 22,375 $ JobQ 13,425 12 Unit Product Cost 13 Unit Product Cost $3,269 $1,114 14 Particulars Total Price for the Job Selling Price per Unit $ $ Job P 117,675 $ 5,884 $ Job Q 60,165 2,006 15 Cost of goods Sold= $177,840

Given, Molding Trimming $ $ OH costs 16,000 19,800 DLH 2,500 1,500 10 Predetermined OH Rate- $ 8.95 MH Total Overhead Cost Total Machine Hour $11,250+($1.90*2,500)+$15,750+(2.70*1,500 $ 35,800 2,500 + 1,500 MH 4,000 Particulars 11 Manufacturing Overhead Applied Job P Job Q $ 22,375 $ 13,425 [$8.95*2,500MH[$8.95*1,500MH] *Total Manufacturing cost = Direct Material + Direct Labor + Overhead Cost Particulars Job P Job Q Direct Material $ 18,000 $ 10,500 Direct Labor $ 25,000 $ 9,500 Overhead $ 22,375 $ 13,425 Total Manufacturing cost $ 65,375 $ 33,425

12 Unit Product cost= Total Manufacturing Cost / Total Units Particulars Job P Total Manufacturing cost $ 65,375 Total units produced 20 Unit Product cost $ 3,269 13 Unit Product cost= Total Manufacturing Cost / Total Units Particulars Job Q Total Manufacturing cost $ 33,425 Total units produced 30 Unit Product cost $ 1,114 14 Particulars Total Manufacturing cost Markup - 80% Total Price for the Job Total units produced Selling Price per Unit $ $ $ Job P 65,375 $ 52,300 $ 117,675$ 20 5,884 $ Job Q 33,425 26,740 60,165 30 2,006 $ 15 Cost of goods sold= Manufacturing cost of Job P + Job Q Cost of goods sold=$117,675 + $60,165 Cost of goods sold=$177,840.

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