Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead | $ | 11,000 | |
Estimated variable manufacturing overhead per direct labor-hour | $ | 1.20 | |
Estimated total direct labor-hours to be worked | 2,200 | ||
Total actual manufacturing overhead costs incurred | $ | 12,700 | |
Job P | Job Q | |||||
Direct materials | $ | 13,200 | $ | 8,200 | ||
Direct labor cost | $ | 16,900 | $ | 7,800 | ||
Actual direct labor-hours worked | 1,300 | 600 | ||||
6. What is the amount of underapplied or overapplied overhead?
7. Will your answer to question 6 increase or decrease unadjusted cost of goods sold?
Decrease | |
Increase |
8. If Sweeten Company requisitioned $24,000 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred?
Overhead incurred =
9. If Sweeten Company’s labor time tickets totaled $28,800 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?
10. Calculate the cost of goods sold using the direct method.
11. Calculate the cost of goods manufactured using the indirect method.
12. Calculate the cost of goods sold using the indirect method.
13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $8,200?
14. How would you revise your answer to question 12 if the company had beginning finished goods inventory of $12,200?
15. Assume that Job P includes 24 units that each sell for $2,600 and that the company’s selling and administrative expenses in March were $20,000. Prepare an absorption costing income statement for March.
Solved first four sub parts as per HOMEWORKLIB POLICY. Please post remaining questions separately. Also, please post complete question since for remaining parts, whole information not given
Part 6 | ||
Overhead applied | $ 11,780 | |
($11,000/2,200*1,900)+($1.20*1,900) | ||
Actual Overhead | $ 12,700 | |
Underapplied Overheads | $ 920 | |
Part 7 | ||
Increase COGS | ||
Part 8 | ||
Total Material requisitioned | $ 24,000 | |
Less: Direct Material ($13,200+$8,200) | $ -21,400 | |
Indirect Material | $ 2,600 | |
Part 9 | ||
Total Labor | $ 28,800 | |
Less: Direct Labor ($16,900+$7,800) | $ -24,700 | |
Indirect Labor | $ 4,100 |
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. I...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...