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): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4, eee Estimated total fixed manufacturing overhead $14,500 $17,700 $32,200 Estimated variable manufacturing overhead per machine-hour $ 3.20 $ 4.00 Job P $31, eee $35,400 Job $17, eee $14,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,500 2,400 5,900 2,600 2,700 5,300 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

Answer 1

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Sweeten
Calculation of predetermined departmental OH Rate	Molding	Fabrication	Note
Machine Hours	2,500.00	1,500.00	A
Fixed Manufacturing overhead	14,500.00	17,700.00	B
Predetermined Departmental Fixed OH Rate	5.80	11.80	C=B/A
Variable OH Rate	3.20	4.00	D
Predetermined Departmental OH Rate	9.00	15.80	E=C+D
Overhead applied- Molding	Job P	Job Q
Machine hours used- Molding	3,500.00	2,600.00	F
Predetermined Departmental OH Rate	9.00	9.00	See E
Overhead applied- Molding	31,500.00	23,400.00	F=F*E
Overhead applied- Fabrication	Job P	Job Q
Machine hours used- Fabrication	2,400.00	2,700.00	H
Predetermined Departmental OH Rate	15.80	15.80	See E
Overhead applied- Fabrication	37,920.00	42,660.00	I=H*E
Cost of goods sold	Job P	Job Q	Total
Direct Materials	31,000.00	17,000.00	48,000.00
Direct Labor	35,400.00	14,700.00	50,100.00
Overhead applied- Molding	31,500.00	23,400.00	54,900.00
Overhead applied- Fabrication	37,920.00	42,660.00	80,580.00
Cost of goods sold	135,820.00	97,760.00	233,580.00
So cost of goods sold is $ 233,580.