Question

Required information The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4) [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 2,500 $11,250 $ 1.90 Fabrication 1,500 $15,750 $ 2.70 Total 4,000 $27,000 Job P $18,000 $25,000 Job Q $ 10,500 $ 9,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,200 1,100 3,300 1,300 1,400 2,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, assume 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.

Answer 1

Calculate Predetermined overhead Rate

Estimated total fixed manufacturing overhead	$27,000
EstimatedVariable overhead cost of molding dept.	$4750 2500 x 1.90
Estimated Variable overhead cost of fabrication dept.	$4050 1500 x 2.70
Estimated Total Overhead	$35800

Predetermined Overhead Rate =   Estimated total Overhead
Estimated Total machine hour

= 35800/4000

=8.95 per MH

Manufacturing overhead Applied (Job Q)

= Predetermined Overhead Rate *  Actual Machine hour

= 8.95 * 2700

= $ 24165

  

6.Total manufacturing cost assigned to job Q

Direct material	$10500
Direct Labor	$9500
Manufacturing Overhead	$24165
Total manufacturing Cost	44165

7.Unit product cost of Job Q If it included 30 units

Total Manufacturing Cost (a)	44165
Total Units ( b)	30
Unit Cost a/b	1472

8..Total Selling Price & Price per Unit

	Job P	Job Q
Total Manufacturing Cost	72535	44165
Mark Up (80% of Total manufacturing Cost)	58028	35332
Total Price for the Job	130563	79497

Job p Total manufacturing Cost = 18000+ 25000+(8.95 * 3300) = 72535

Add 80% mark up to manufacturing cost calculated

	Job P	Job Q
Total price for the job (a)	130563	79497
Number of Units (b)	20	30
Unit Price a/b	6528	2650

9.Cost of Goods Sold in March

Total Manufacturing Cost assigned to Job P (a)	72535
Total Manufacturing Cost assigned to Job Q (b)	44165
Cost of Goods sold a + b	116700