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
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	10,000		$	15,000		$	25,000
Estimated variable manufacturing overhead per machine-hour	$	1.40		$	2.20

	Job P			Job Q
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual machine-hours used:
Molding		1,700			800
Fabrication		600			900
Total		2,300			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.

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

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

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

4. 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.)

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

6. 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.)

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

	Job p	job Q
Total price for the job
selling price per unit

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

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

11. How much manufacturing overhead was applied from the Fabrication Department 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?

13. If Job Q included 30 units, what was its unit product cost?

14. 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? (Do not round intermediate calculations.)

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

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Part -1	Predetermined overhead Rate	31800/4000	$            7.95	Per Machine Hour
	(Budgeted Overhead/Budgeted Direct Labor Hours)
	Fixed	$     25,000.00
	Variable (2500*1.4)+(1500*2.2)	$       6,800.00
	Total Budgeted Overhead	$     31,800.00
Part -2	(Machine Hours*Predetermined Overhead Rate)
	Job P	2300*7.95	$       18,285
	Job Q	1700*7.95	$       13,515
Part -3
	Direct Materials	$           13,000
	Direct Labor	$           21,000
	Overheads	$           18,285
	Total Manufacturing Cost P	$           52,285
Part -4	Unit Product Cost (52285/20)	$       2,614.25
Part -5
	Direct Materials	$             8,000
	Direct Labor	$             7,500
	Overheads	$           13,515
	Total Manufacturing Cost P	$           29,015
Part -6	Unit Product Cost (29015/30)	$           967.17
Part -7
		Job P	Job Q
	Total Cost	$           52,285	$       29,015
	Mark UP 80%	$           41,828	$       23,212
	Total Selling Price	$           94,113	$       52,227
	Units	20	30
	Selling Price per unit	$             4,706	$         1,741
Part -8
	Cost of Goods Sold	$           81,300
	(52285+29015)
Part -9		Molding	Fabrication
	Estimated Machine Hour B	2500	1500
	Fixed Overhead	$           10,000	$       15,000
	Variable Overhead	$             3,500	$         3,750
	Total Budgeted Overhead A	$           13,500	$       18,750
	Predetermined Overhead Rate A/B	$                5.40	$         12.50
Part -10
	Molding:	Job P	Job Q
	Machine Hours Used	1700	800
	Overhead Rate per hour	$                5.40	$            5.40
	Overhead Applied	$       9,180.00	$   4,320.00
Part -11
	Fabrication:	Job P	Job Q
	Machine Hours Used	600	900
	Overhead Rate per hour	$             12.50	$         12.50
	Overhead Applied	$       7,500.00	$ 11,250.00
Part -12
	Direct Materials	$           13,000
	Direct Labor	$           21,000
	Overheads:
	Molding	$             9,180
	Fabrication	$             7,500
	Total Manufacturing Cost P	$           50,680
	Unit Product Cost (50680/20)	$       2,534.00
Part -13	Direct Materials	$             8,000
	Direct Labor	$             7,500
	Overheads:
	Molding	$             4,320
	Fabrication	$           11,250
	Total Manufacturing Cost P	$           31,070
	Unit Product Cost (31070/30)	$       1,035.67
Part -14
		Job P	Job Q
	Total Cost	$           50,680	$       31,070
	Mark UP 80%	$           40,544	$       24,856
	Total Selling Price	$           91,224	$       55,926
	Units	20	30
	Selling Price per unit	$             4,561	$         1,864
Part -15	Cost of Goods Sold	$           81,750
	(50680+31070)