Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress at the beginning of March and no

Required information

[The following information applies to the questions displayed below.]

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departmentsMolding and Fabrication. It started, completed, and sold only two jobs during MarchJob P and Job Q. 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):

Molding

Fabrication

Total

Estimated total machine-hours used

2,500

1,500

4,000

Estimated total fixed manufacturing overhead

$

13,000

$

16,800

$

29,800

Estimated variable manufacturing overhead per machine-hour

$

2.60

$

3.40

Job P

Job Q

Direct materials

$

25,000

$

14,000

Direct labor cost

$

30,600

$

12,300

Actual machine-hours used:

Molding

2,900

2,000

Fabrication

1,800

2,100

Total

4,700

4,100

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate per MH 2. How much manufacturing overhead was calculations.) applied to Job P and how much was applied to Job Q? (Do not round intermediate Job P Job Q Manufacturing overhead applied 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost 4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) Total manufacturing cost . 6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost 7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Job P Job Q Total price for the job Selling price per unit 8. What was Sweeten Company's cost of goods sold for March? (Do not round intermediate calculations.) Cost of goods sold 9. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) Predetermined Overhead Rate Molding Department Fabrication Department per MH per MH 10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) Job P Job Q Manufacturing overhead applied

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

Fundamental Cornerstones Of Managerial Accounting

Authors: Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen

1st Edition

ISBN: 0324378068, 9780324378061

More Books

Students also viewed these Accounting questions

Question

4. Record one of your lessons to check yourself for clarity.

Answered: 1 week ago

Question

3. Raster images for screen projects need to be 72 dpi to scale.

Answered: 1 week ago