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 $14,500 $17,700 $32,200 $ 3.20 $ 4.00 Job P $31,000 $35, 400 Job Q $17,000 $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 overhead rates with machine-hours as the allocation base in both departments. Foundational 2-8 8. What was Sweeten Company's cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

Plantwide predetermined overhead rate = Estimated fixed and variable overhead / Estimated machine hours

Plantwide predetermined overhead rate = $32,200 + (2,500*$3.20+1,500*$4) / 4,000

Plantwide predetermined overhead rate = $32,200 + 14,000 / 4,000 = $11.55 per machine hour

8.

Cost of goods sold:

	Job P	Job Q	Total
Direct material	$31,000	$17,000	$48,000
Direct labor	35,400	14,700	50,100
Manufacturing overhead applied	68,145 (5,900*$11.55)	61,215 (5,300*$11.55)	129,360
Total cost	$134,545	$92,915	$227,460

Cost of goods sold $227,460