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 labor-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	$	11,000
Estimated variable manufacturing overhead per direct labor-hour	$	1.20
Estimated total direct labor-hours to be worked		2,200
Total actual manufacturing overhead costs incurred	$	12,700

	Job P			Job Q
Direct materials	$	13,200		$	8,200
Direct labor cost	$	16,900		$	7,800
Actual direct labor-hours worked		1,300			600

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

7. Will your answer to question 6 increase or decrease unadjusted cost of goods sold?

	Decrease
	Increase

8. If Sweeten Company requisitioned $24,000 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred?

Overhead incurred =

9. If Sweeten Companys labor time tickets totaled $28,800 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?

10. Calculate the cost of goods sold using the direct method.

11. Calculate the cost of goods manufactured using the indirect method.

12. Calculate the cost of goods sold using the indirect method.

13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $8,200?

14. How would you revise your answer to question 12 if the company had beginning finished goods inventory of $12,200?

15. Assume that Job P includes 24 units that each sell for $2,600 and that the companys selling and administrative expenses in March were $20,000. Prepare an absorption costing income statement for March.