Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding 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 | $ | 12,750 | $ | 16,650 | $ | 29,400 | |||
Estimated variable manufacturing overhead per machine-hour | $ | 2.50 | $ | 3.30 | |||||
Job P | Job Q | |||||
Direct materials | $ | 24,000 | $ | 13,500 | ||
Direct labor cost | $ | 29,800 | $ | 11,900 | ||
Actual machine-hours used: | ||||||
Molding | 2,800 | 1,900 | ||||
Fabrication | 1,700 | 2,000 | ||||
Total | 4,500 | 3,900 | ||||
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.
Please answer the following using given information:
6. If Job Q includes 30 units, what is its unit product cost?
7. 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? (Do not round intermediate calculations.
Round your final answers to nearest whole dollar.)
Job P:
Total price for the job
Selling price per unit
Job Q:
Total price for the job
Selling price per unit
8. What is Sweeten Company's cost of goods sold for the year?
9. What are 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 per MH =
Fabrication Department 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.)
Manufacturing Overhead Applied Job P =
Manufacturing Overhead Applied Job Q =
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
Manufacturing Overhead Applied Job P =
Manufacturing Overhead Applied 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? (Do not round intermediat
nearest whole dollar.)
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? (Do not round intermediate calculations.
Round your final answers to nearest whole dollar.)
Job P:
Total price for the job
Selling price per unit
Job Q:
Total price for the job
Selling price per unit
15. What is Sweeten Company's cost of goods sold for the year?
THANK YOU! :)
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