Question

Chapter 2 Homework Assignment Saved Help 10 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): Part 10 of 15 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication 2,500 1,500 $11,000 $15,600 $ 1.80 $ 2.60 Total 4,000 $26, 600 1 points Skipped Job P $17,000 $ 24, 200 Job O $10,000 $ 9, 100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total eBook 2,100 1,000 3,100 1,200 1,300 2,500 References Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, sume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.

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

a. What was the company’s plant wide predetermined overhead rate? (Round your answer to 2 decimal places.)

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

12. 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.)

a. 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.)

b. 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? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

6.
a. Plantwide Overhead rate = (2500 x $1.80 + 11000 + 1500 x $2.60 + 15600) / 4000 = $8.75 per hour

b. Manufacturing Overhead applied
Job P = 3100 x $8.75 = $27,125
Job Q = 2500 x $8.75 = $21,875

12.
Departmental Overhead rate
Molding = $1.80 + 11000 / 2500 = $6.20 per hour
Fabrication = $2.60 + 15600 / 1500 = $13 per hour

Cost of Job P = $17000 + 24200 + 2100 x $6.20 + 1000 x 13 = $67,220
Unit Cost = $67220 / 20 = $3361

a.
Cost of Job Q = $10000 + 9100 + 1200 x $6.20 + 1300 x 13 = $43,440
Unit Cost = $43440 / 30 = $1448

b.
Selling Price per unit for Job P = $3361 x 180% = $6049.80 or $6050
Selling Price per unit for Job Q = $1448 x 180% = $2606.40 or $2606

15.
For cost of goods sold, units sold is not given.
If all units are sold
Cost of Goods Sold = $67220+43440 = $110,660

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