Question
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
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):
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Estimated total fixed manufacturing overhead | $ | 14,400 |
Estimated variable manufacturing overhead per direct labour-hour | $ | 1.50 |
Estimated total direct labour-hours to be worked |
| 3,600 |
Total actual manufacturing overhead costs incurred | $ | 19,500 |
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| Job P | Job Q | ||
Direct materials | $ | 15,000 | $ | 9,600 |
Direct labour | $ | 40,500 | $ | 12,000 |
Actual direct labour-hours worked |
| 2,700 |
| 800 |
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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.)
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.)
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