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Required information [ The following information applies to the questions displayed below. ] Sweeten Company had no jobs in progress at the beginning of the
Required information
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 machinehours. At the beginning of the year, it estimated that machinehours would be
required for the period's estimated level of production. Sweeten also estimated $ of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $ per machinehour.
Because Sweeten has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide
overhead rate with departmental rates that would also be based on machinehours. The company gathered the following
additional information to enable calculating departmental overhead rates:
The direct materials cost, direct labor cost, and machinehours used for Jobs P and Q are as follows:
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Required:
For questions assume that Sweeten Company uses a plantwide predetermined overhead rate with machinehours as
the allocation base. For questions, assume that the company uses predetermined departmental overhead rates with
machinehours as the allocation base in both departments.
What is Sweeten Company's cost of goods sold for the year?
Note: Do not round intermediate calculations.
Answer is complete but not entirely correct.
Its telling me to use predetermined departmental overhead rates
Required information
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 The company uses a plantwide predetermined
overhead rate based on machinehours. At the beginning of the year, it estimated that machinehours would be
required for the period's estimated level of production. Sweeten also estimated $ of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $ per machinehour.
Because Sweeten has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide
overhead rate with departmental rates that would also be based on machinehours. The company gathered the following
additional information to enable calculating departmental overhead rates:
The direct materials cost, direct labor cost, and machinehours used for Jobs P and Q are as follows:
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Required:
For questions assume that Sweeten Company uses a plantwide predetermined overhead rate with machinehours as
the allocation base. For questions, assume that the company uses predetermined departmental overhead rates with
machinehours as the allocation base in both departments.
What is Sweeten Company's cost of goods sold for the year?
Note: Do not round intermediate calculations.
Answer is complete but not entirely correct.
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