Question
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
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 $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 | 2,500 | 1,500 | 4,000 |
Estimated total fixed manufacturing overhead | $ 11,000 | $ 15,600 | $ 26,600 |
Estimated variable manufacturing overhead per machine-hour | $ 1.80 | $ 2.60 |
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 | $ 17,000 | $ 10,000 |
Direct labor cost | $ 24,200 | $ 9,100 |
Actual machine-hours used: | ||
Molding | 2,100 | 1,200 |
Fabrication | 1,000 | 1,300 |
Total | 3,100 | 2,500 |
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.
10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
Note: Do not round intermediate calculations.
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P includes 20 units, what is its unit product cost?
13. If Job Q includes 30 units, what is its unit product cost?
14. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
15. What is Sweeten Companys cost of goods sold for the year?
Thank you so much!!!!
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