Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2329323 • Letter: S
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.
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?
Explanation / Answer
Solution 12 and 13:
Solution 14:
Solution 15:
Sweeten company cost of goods sold = $141,320 + $102,240 = $243,560
Computation of departmental overhead rates Particulars Molding Fabrication Fixed manufacturing overhead $14,750 $17,850 Variable manufacturing overhead $8,250 $6,150 Total manufacturing overhead $23,000 $24,000 Nos of machine hours $2,500 $1,500 Overhead rate per machine hour $9.20 $16.00Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.