Unit product cost = The following information applies to the questions displayed

Question

Unit product cost = The following information applies to the questions displayed below. 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, 000 $10,000 $15,000 $25,000 2,500 1, 500 $ 1.40 2.20 Job P Job Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total $13,000 $8,000 $21,000 $7,500 1,700 800 900 1,700 600 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. 13.If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final an

Explanation / Answer

Calculate unit product cost for JOB Q for 30 units Calculate total manufacturing overhead cost for molding department Estimated fixed manufacturing overhead cost 10000 variable overhead cost for direct machine hour 1.4 Machine hours 2500 Total manufacturing overhead cost for molding (10000+(1.4*2500)) 13500 Predetermined overhead rate (manufacturing cost/allocation base) (13500/2500) 5.4 Calculate total manufacturing overhead cost for fabrication department Estimated fixed manufacturing overhead cost 15000 variable overhead cost for direct machine hour 2.2 Machine hours 1500 Total manufacturing overhead cost for molding (15000+(2.2*1500)) 18300 Predetermined overhead rate (manufacturing cost/allocation base) (18300/1500) 12.2 Calculate total manufacturing cost assigned to Job Q Particulars Amount Direct materials 8000 Direct labor 7500 manufacturing overhead Molding department (800*5.4) 4320 Fabrication Department (900*12.2) 10980 Total manufacturing cost 30800 Number of units 30 unit product cost(30800/30) 1027

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