Q1)

Sweeten Company had no jobs in progress at the beginning of March and no beginning

inventories. It started only two jobs during MarchJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead $10,000

Estimated variable manufacturing overhead per direct labor-hour $1.00

Estimated total direct labor-hours to be worked 2.000

Total actual manufacturing overhead costs incurred $12.500

Direct materials: job P $13,000 job Q $8,000

Direct labor cost: job P $21,000 job Q $7,500

Actual direct labor-hours worked: job P 1400 job Q 500

Required:

1. What is the company's predetermined overhead rate?

2. How much manufacturing overhead was applied to Job Pand Job Q?

3. What is the direct labor hourly wage rate?

4. If Job P includes 20 units, what is its unit product cost? What is the total amount of

manufacturing cost assigned to Job Q as of the end of March (including applied

overhead)?

5. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production.

6. Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production

7. Prepare the journal entry to apply manufacturing overhead costs to production.

Q2)

Northwest Manufacturing Company has the following departments with the following data:

Budget departmental annual data

Direct labor costs: Department X $180,000 Department Y $165,000

Indirect manufacturing costs: Department X $225,000 Department Y 180,000

Machine hours: Department X 51,000

Department Y 40,000

Actual data for Job 202

Direct material costs: Department X $10,000 Department Y $16,000

Direct labor costs: Department X $11,000

Department Y $14,000

Machine hours: Department X 5,000 Department Y 3,000

Required:

1. Determine the predetermined allocation rate for department X.

2. Determine the predetermined allocation rate for department Y.

3. Determine the amount of indirect manufacturing costs allocated to Job 202.

4. Assume that Job 202 is comprised of 50 finished units. Determine the total manufacturing cost per unit of Job 202.