Question

4. If Job P included 20 units, what was its unit product cost?

Required information (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 Q $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.

Answer 1

Answer : Units Product Cost = $ 2614.25

Estimated Total Machine Hours Used Estimated Total Fixed Manufacturing Overhead Estiamted Varaible Manifacturing OH Per Machine Hours Job P Direct Material 13000 Direct Labor Cost 21000 Actula Machine- Hours Used Molding 17001 Fabrication 600 Total 2300 Molding Fabrication Total 2500 1500 4000 10000 15000 25000 1.4 2.21 Job o 8000 7500 8001 9001 1700 Plant Wide Predetermined Overhead Rate + Molding Fabrication 10000 15000 2500 1500 1.4 2.2 13500 18300 31800 7.95 4000 2) 2300 1700 18285 13515 3) Answer Overhead Rate 31800 7 Overhead Applied to Job P, Job Q Job P 7.95 • Answers Job Q 7.95 1 Total Manufacturing cost for Job P Direct Material 13000 Direct Labor Cost 21000 Manufacturing Overheads 18285 Total Manufacturing cost for Job P 52285 If Job P Includes 20 Units Unit Product Cost Answer Unit cost 52285 Answers 20 2614.25