1-Assume that Sweeten Company used cost-plus pricing (and a markup percentage of
ID: 2328862 • Letter: 1
Question
1-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?
2- What was Sweeten Company’s cost of goods sold for March?
(predetermined overhead rate: 10.75
manufacturing overhead was applied to Job P : 54825
manufacturing overhead was applied to Job Q: 48375
total manufacturing cost assigned to Job P: 114025
If Job P included 20 units, unit product cost: 5701
the total manufacturing cost assigned to Job Q?: 76475
If Job Q included 30 units, what was its unit product cost?: 2549
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?
JOB P : total price for the job : 205245 , selling price per unit: 10262
JOB Q: total price for the job: 137655 , selling price per unit: : 4589
What was Sweeten Company’s cost of goods sold for March? ( 190500)
predetermined overhead rates in the Molding Department : 8.2
and the Fabrication Department? 15
manufacturing overhead was applied from the Molding Department to Job P: 25420
and how much was applied to Job Q?: 18040
How much manufacturing overhead was applied from the Fabrication Department to Job P:30000
and how much was applied to Job Q? :34500
If Job P included 20 units, what was its unit product cost?: 5731
If Job Q included 30 units, what was its unit product cost? : 2688
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 Fabrication Total 4,980 $13,580 $17,188 $36,68e 2,580 1,580 $ 2.8e 3.6e Job Q $27,880 $15,988 $32,28e $13,18e Job p Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,18e 2,000 5,180 2,28e 2,30e 4,500 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Requlred: 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. 14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish elling 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 yur final nswer to nearest whole dollar.) Total price for the job Selling price per unitExplanation / Answer
Solution 14:
Solution 1:
Predetermined overhead rate = Estimated overhead / Estimated machine hours
= (2500*$2.80 + 1500*$3.60 + $30,600) / 4000 = $10.75 per machine hour
manufacturing overhead was applied to Job P = 5100 * $10.75 = $54,825
manufacturing overhead was applied to Job Q = 4500*$10.75 = $48,375
Cost of goods sold for march = $114,025 + $76,475 = $190,500
Computation of departmental overhead rates Particulars Molding Fabrication Fixed manufacturing overhead $13,500 $17,100 Variable manufacturing overhead $7,000 $5,400 Total manufacturing overhead $20,500 $22,500 Nos of machine hours $2,500 $1,500 Overhead rate per machine hour $8.20 $15.00Related Questions
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