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.

10. 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.)

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? (Do not round intermediate calculations.)

13. 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.)

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. Round your final answer to nearest whole dollar.)

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

Answer 1

Predetermined overhead rate Molding = 1.7+(10750/2500)= $6
Predetermined overhead rate Faabrication = 2.5+(15450/1500)= $12.8
10
Job P	12000	=2000*6
Job Q	6600	=1100*6
11
Job P	11520	=900*12.8
Job Q	15360	=1200*12.8
12
	Job P
Direct materials	16000
Direct labor cost	23400
Overhead	23520	=12000+11520
Total cost	62920
Divided by units	20
Unit product cost	3146
13
	Job Q
Direct materials	9500
Direct labor cost	8700
Overhead	21960	=6600+15360
Total cost	40160
Divided by units	30
Unit product cost	1339
14
	Job P	Job Q
Total costs	62920	40160
Add: Markup	50336	32128
Selling price	113256	72288
Divided by units	20	30
Selling price per unit	5663	2410
15
Cost of goods sold for March = 62920+40160= $103080