The Foundational 15 (Algo) [LO2-1, LO2-2, LO2-3, LO2-4]

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Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the yearJob P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the periods estimated level of production. Sweeten also estimated $31,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.20 per machine-hour.

Because Sweeten has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates:

	Molding	Fabrication	Total
Estimated total machine-hours used	2,500	1,500	4,000
Estimated total fixed manufacturing overhead	$ 13,750	$ 17,250	$ 31,000
Estimated variable manufacturing overhead per machine-hour	$ 2.90	$ 3.70

The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:

	Job P	Job Q
Direct materials	$ 28,000	$ 15,500
Direct labor cost	$ 33,000	$ 13,500
Actual machine-hours used:
Molding	3,200	2,300
Fabrication	2,100	2,400
Total	5,300	4,700

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

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

Foundational 2-15 (Algo)

15. What is Sweeten Companys cost of goods sold for the year? (Do not round intermediate calculations.)