Question: Sweeten Company had no jobs in progress
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 March—Job 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):
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.
1. What was the company’s plantwide predetermined overhead rate?
2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?
3. What was the total manufacturing cost assigned to Job P?
4. If Job P included 20 units, what was its unit product cost?
5. What was the total manufacturing cost assigned to Job Q?
6. If Job Q included 30 units, what was its unit product cost?
7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
8. What was Sweeten Company’s cost of goods sold for March?
9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?
10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P included 20 units, what was its unit product cost?
13. If Job Q included 30 units, what was its unit product cost?
14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
15. What was Sweeten Company’s cost of goods sold for March?
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Molding Fabrication Total Estimated total machine-hours used..... Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour 2,500 1,500 4,000 $10,000 $15,000 $25,000 ... . $1.40 $2.20 Job P Job Q Direct materials... $13,000 $21,000 $8,000 $7,500 Direct labor cost . Actual machine-hours used: Molding 1,700 800 Fabrication . 600 900 Total 2,300 1,700
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