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 1,500 $16,350 Estimated total machine-hours used 4,000 $28,600 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $12,250 2.30 3.10 Job P Job 0 Direct materials $22,000 $28,200 $12,500 $11,100 Direct labor cost Actual machine-hours used Molding 2,600 1,500 4,100 1,700 Fabrication 1,800 Total 3,500 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. S

1. What was the company’s plantwide predetermined overhead rate?

1a. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

b. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)

2a. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

2b. What was the total manufacturing cost assigned to Job Q?

2c. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

3. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?

4. What was Sweeten Company’s cost of goods sold for March?

5a. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

5b. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Answer 1

Estimalual tota) ovhad (Ftv) Estimatd toral)machine hocur Cempny't plar wde prederimimd Ovs head fat (rs00x k3.10) Esimaid total oeihead $28600+ (25oox 2.30 + + 50t 4650 428600 2429.000 $S9000 Precdetem'med ovahead rate 4,000 $9.75 JOL & Jobp Toral manutauring calenead applied 500 x49.25 u100x $9.7S $ 34125 39995 manufacuving Toral asigmed to Jobp: pm+DL+ MOH COsr =422000+ 28200+ 39995 Stl'ob& Cosr Jobf unir product ot Tob p 29 TOral manufauhy 20 unio 190175 $4509 TOral manutawiny ost achaned to Tob= pmtoL tmoh rthe 40aillt aasu unii produt 20 COST 아 JOb & e rt'tst 30 wnfh 1924

Job & Job P Toral price fry Job 08+stlob 4 52728 +801. /00 4103905 $162,315 sening Price per unit -E1623158116 696363450 20 30 COST 07 goods Sold manutauwiny -auwiny Lost on Jobf + toral manuf Total cost o JoL&Q - $ruagoo Curmpany! Predeteminol ovuhed rates in hu fabricatim department molding depastmnt moting depaurmnt $ 2500 42-30t 912230 ニ子2 2 500 Fabritation depautment = 1500A$3-10+ $16380 $14 2os'1 Manutaun ing overheads apphed fromm - molding depautmen t Manufacutong Job&. JOb p Overheads applicd 1700x 17-2 . 2600 x 7.2 312240 Fabritatim ppartmenr JobQ Job p oyehcads applied manutauning 1500 rsxSfy 21poo 25200