Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2336306 • 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):
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.
6. 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.)
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? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)
9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)
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 $ 2.50Explanation / Answer
Total estimated overhead cost: Molding 15000 =10750+(2500*1.7) Fabrication 19200 =15450+(1500*2.5) Total estimated overhead cost 34200 Plantwide predetermined overhead rate = 34200/4000= $8.55 6 Job P Direct materials 9500 Direct labor cost 8700 Overhead 19665 =2300*8.55 Total cost 37865 Divided by units 30 Unit product cost 1262 7 Job P Job Q Total costs 64195 37865 Add: Markup 51356 30292 Selling price 115551 68157 Divided by units 20 30 Selling price per unit 5778 2272 8 Cost of goods sold for March = 64195+37865= $102060 9 Predetermined overhead rates : Molding Department 6 =1.7+(10750/2500) Fabrication Department 12.8 =2.5+(15450/1500)
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