Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2391378 • 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:
12. If Job P included 20 units, what was its unit product cost?
2. 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?
3.What was Sweeten Company’s cost of goods sold for March?
Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 10,250 $ 15,150 $ 25,400 Estimated variable manufacturing overhead per machine-hour $ 1.50 $ 2.30Explanation / Answer
Solution: 12) Computation of Unit Product Cost of P Particluars Amount Direct Material 14000 Direct Labor 21800 Variable Magf Overhead Molding=(1.5*1800) 2700 Fabrication= (2.30*700) 1610 Fixed Mafg Overhead Molding=(10250*1800/2700) 6833 Fabrication=(15150*700/1700) 6238 Total Cost 53181 No of units 20 Cost per unit 2659.05 2) Computation of Selling Price Job P Job Q Direct Material 14000 8500 Direct Labor 21800 7900 Variable Magf Overhead 4310 3650 Fixed Mafg Overhead 13071 12329 Total Manufacturing Cost 53181 32379 Add: Mark Up 80% of the cost 42544.8 25903.2 Total Selling Price 95725.8 58282.2 No of Units 20 30 Selling Price per unit 4786.29 1942.74 3) Computation of Cost of Goods Sold Particulars Amount Cost of Goods of Job P 53181 Cost of Goods of Job Q 32379 Total Cost of Goods Sold 85560
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