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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 March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labour-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 labour-hour	$	1.00
Estimated total direct labour-hours to be worked		2,000
Total actual manufacturing overhead costs incurred	$	12,500

	Job P		Job Q
Direct materials	$	13,000	$	8,000
Direct labour cost	$	21,000	$	7,500
Actual direct labour-hours worked		1,400		500

1. What is the companys predetermined overhead rate?

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

3. What is the direct labour hourly wage rate?

4-a. If Job P includes 20 units, what is its unit product cost?

4-b. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the purchases of raw materials on account.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

6. Assume that the company does not use any indirect labour. Prepare the journal entry to record the direct labour costs added to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record entry to direct labor costs added to production.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

7. Prepare the journal entry to apply manufacturing overhead costs to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record entry to apply manufacturing overhead costs to production.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

8. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured. (Do not leave any empty spaces; input a 0 wherever it is required.)

9. Prepare the journal entry to transfer costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record entry to transfer costs from Work in Process to Finished Goods.

10. Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account. (Do not leave any empty spaces; input a 0 wherever it is required.)

11. Prepare a schedule of cost of goods sold. (Do not leave any empty spaces; input a 0 wherever it is required.)

12. Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

13. What is the amount of underapplied or overapplied overhead?

14. Prepare the journal entry to close the amount of underapplied or overapplied overhead to the appropriate account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)