Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [ The following information applies to the questions displayed below. ] Sweeten Company had no jobs in progress at the

Required information
Skip to question
[The following information applies to the questions displayed below.]
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the yearJob P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the periods estimated level of production. Sweeten also estimated $26,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per machine-hour.
Because Sweeten has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates:
Molding Fabrication Total
Estimated total machine-hours used 2,5001,5004,000
Estimated total fixed manufacturing overhead $ 10,750 $ 15,450 $ 26,200
Estimated variable manufacturing overhead per machine-hour $ 1.70 $ 2.50
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Job P Job Q
Direct materials $ 16,000 $ 9,500
Direct labor cost $ 23,400 $ 8,700
Actual machine-hours used:
Molding 2,0001,100
Fabrication 9001,200
Total 2,9002,300
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
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 predetermined departmental overhead rates with machine-hours as the allocation base in both departments.
15. What is Sweeten Companys cost of goods sold for the year?
Note: Do not round intermediate calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions

Question

Why are the chemical properties of the rare earths so similar?

Answered: 1 week ago

Question

Consider a M/G/1 system with E[S] Answered: 1 week ago

Answered: 1 week ago