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	$	14,750		$	17,850		$	32,600
Estimated variable manufacturing overhead per machine-hour	$	3.30		$	4.10

	Job P			Job Q
Direct materials	$	32,000		$	17,500
Direct labor cost	$	36,200		$	15,100
Actual machine-hours used:
Molding		3,600			2,700
Fabrication		2,500			2,800
Total		6,100			5,500

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?

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?

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?

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?

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

Answer 1

		Moulding	Fabrication	Total
	Estimated Total Fixed OH	$14,750	$17,850	$32,600
	Estimated Total variable OH	$8,250	$6,150	$14,400		Estimated Total mach Hrs *variable MOH per machine hr
	Total estimated OH	$23,000	$24,000	$47,000		Moulding	2500*3.3	$8,250
	Estimated Total Mach			4000		fabrication	1500*4.1	$6,150
	Hrs
	Estimated plant wide oH rate /hr			$11.75
		Job P
2	Actual Machine Hrs
	Moulding	3600
	fabrication	2500
	Total	6100
	OH rate /hr	$11.75
	Total MOH	$71,675.00
		Job Q
	Actual Machine Hrs
	Moulding	2700
	fabrication	2800
	Total	5500
	OH rate /hr	$11.75
	Total MOH	$64,625.00
3	Total Manufcaturing cost of Job P
	DM	$32,000
	DL	$36,200
	MOH	$71,675.00
	Total Manufcaturing cost of Job P	$139,875
4	Unit Cost of Job P
	Total Manufacturing Cost	$139,875
	Units	20
	unit product Cost	$6,993.75
5	Total Manufcaturing cost of Job Q
	DM	$17,500
	DL	$15,100
	MOH	$64,625.00
	Total Manufcaturing cost of Job P	$97,225
6	Unit Cost of Job Q
	Total Manufacturing Cost	$97,225
	Units	30
	unit product Cost	$3,240.83
7		Job P	Job Q
	Total MOH Costs	$139,875	$97,225
	Add 80% Mark Up	$111,900.0	$77,780.0
	Total Selling Price of Jobs	$251,775.0	$175,005.0
	Units	20	30
	SP/Unit	$12,588.75	$5,833.50
8	Total manufacturing cost of Job P	$139,875
	Total manufacturing cost of Job Q	$97,225
	Sweeten Cost of Goods	$237,100
	Sold
9		Moulding	Fabrication
	Estimated Total Fixed OH	$14,750	$17,850
	Estimated Total variable OH	$8,250	$6,150
	Total Estimated MOH	$23,000	$24,000
	Estimated Total Mach	$2,500	$1,500
	Hrs
	Predetermined Departmental OH rate	9.2	16
11		Job P	Job Q
	fabrication OH allocated
	2500*16	$40,000
	2800*16		$44,800
10		Job P	Job Q
	Moulding Oh allocated
	3600*9.2	$33,120
	2700*9.2		$24,840