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	$	10,750		$	15,450		$	26,200
Estimated variable manufacturing overhead per machine-hour	$	1.70		$	2.50

	Job P			Job Q
Direct materials	$	16,000		$	9,500
Direct labor cost	$	23,400		$	8,700
Actual machine-hours used:
Molding		2,000			1,100
Fabrication		900			1,200
Total		2,900			2,300

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.

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?

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

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

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

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?

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?

Answer 1

according to the comment recieved i have made necessary changes.

7.

calculation of selling price per unit of job P and job Q where 20 units in  job P and 30 units in jobQ are sold

PARTICULARS		JOB P	JOB Q
Total manufacturing cost	$	71,250	49,270
add: mark up on cost (80%)	$	57,000	39,416
selling price		128,250	88,686
no. units		20	30
selling price per unit ( selling price / no.units)		6412.5	2956.2

8.

The sweeten company's cost of goods sold for the month of march

particulars	amount $	amount $
manufacturing cost of job P	71,250
manufacturing cost of job Q	49,270
Total cost of goods sold of sweeten company		120,520

9.

The company's predetermined overhead rates in molding and fabrication department

PARTICULARS		MOLDING	FABRICATION
fixed manufacturing overhead	$	4.3	10.3
variable manufacturing overhead	$	1.70	2.50

* the rates specified above are per machine hour basis