[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. 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	$	13,200
Estimated variable manufacturing overhead per direct labor-hour	$	1.20
Estimated total direct labor-hours to be worked		3,300
Total actual manufacturing overhead costs incurred	$	17,000

	Job P			Job Q
Direct materials	$	13,100		$	9,300
Direct labor cost	$	43,200		$	11,700
Actual direct labor-hours worked		2,400			650

13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $9,300?

eBook & Resources

eBook: Apply overhead cost to jobs using a predetermined overhead rate.eBook: Compute a predetermined overhead rate.eBook: Compute the total cost and average cost per unit of a job.eBook: Compute underapplied or overapplied overhead cost.eBook: Use the direct method to determine cost of goods sold.eBook: Use the indirect method to determine cost of goods sold.

14.

Required information

14. How would you revise your answer to question 12 if the company had beginning finished goods inventory of $13,300?

eBook & Resources

eBook: Apply overhead cost to jobs using a predetermined overhead rate.eBook: Compute a predetermined overhead rate.eBook: Compute the total cost and average cost per unit of a job.eBook: Compute underapplied or overapplied overhead cost.eBook: Use the direct method to determine cost of goods sold.eBook: Use the indirect method to determine cost of goods sold.

15.

Required information

15. Assume that Job P includes 19 units that each sell for $4,500 and that the companys selling and administrative expenses in March were $10,000. Prepare an absorption costing income statement for March.