Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin

Question

3 years ago

8

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin

g 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):
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 13,000 $ 16,800 $ 29,800
Estimated variable manufacturing overhead per machine-hour $ 2.60 $ 3.40
Job P Job Q
Direct materials $ 25,000 $ 14,000
Direct labor cost $ 30,600 $ 12,300
Actual machine-hours used:
Molding 2,900 2,000
Fabrication 1,800 2,100
Total 4,700 4,100
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 for all of its jobs. What selling price would 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?

Business

2 answers:

zlopas [31] · Answer 1 · 2022-03-02T04:10:03+03:00

1.Plant wide predetermined rate= $\frac{Total Fixed Manufacturing Overheads}{Total Estimated Hours}$

Plant Wide Predetermined rate= $\frac{29800}{4000}$

Plant Wise Predetermined Rate=$7.45

2. Manufacturing Overheads Applied to P and Q

P Q

Variable Manufacturing Overheads

Molding 7540 5200

Fabrication 6120 7140

Fixed Manufacturing Overheads

Molding 21605 14900

Fabrication 13410 15645

Total 48675 42885

3. Total Manufacturing Cost assigned to Job P is $48675.

4. If P has 20 Units Unit Product Cost will be as below:

Direct Materials 25000

Direct Labour 30600

Total Manufacturing overheads assigned 48675

total Product Cost 104275

Cost per unit $5213.75

5. Total Manufacturing Cost Assigned to Job Q is $42885.

6. If Q has 30 units uint product cost will be as below:

Direct Materials 14000

Direct Labour 12300

Total Manufacturing Overheads 42885

Total Cost 69185

Cost per Unit $2306.16

7. Selling Price for P

Total Cost of P...............................................................................$104275

Mark Up...........................................................................................$38940

Selling Price......................................................................................$ 143215

Cost per unit.....................................................................................$7160.75

Selling Price for Q

Total Cost of Q ..............................................................................69185

Markup ......................................................................................... 34308

Selling Price ................................................................................103493

Cost per unit...................................................................................$3449.76

8. Cost of Goods Sold for March...................................................$173460

cluponka [151] · Answer 2 · 2022-03-02T06:10:56+03:00

Answer:

1. Plant wide predetermined rate= Total fixed manufacturing overhead/Total estimated hours

Plant Wide Predetermined rate= 29800/4000

Plant Wise Predetermined Rate=$7.45

2. Assembling Overheads Applied to P and Q

P Q

Variable Manufacturing Overheads

Embellishment 7540 5200

Manufacture 6120 7140

Fixed Manufacturing Overheads

Trim 21605 14900

Manufacture 13410 15645

All out 48675 42885

3. All out Manufacturing Cost doled out to Job P is $48675.

4. In the event that P has 20 Units Unit Product Cost will be as beneath:

Direct Materials 25000

Direct Labor 30600

Absolute Manufacturing overheads allocated 48675

Absolute Product Cost 104275

Cost per unit $5213.75

5. Absolute Manufacturing Cost Assigned to Job Q is $42885.

6. In the event that Q has 30 units unit item cost will be as underneath:

Direct Materials 14000

Direct Labor 12300

Absolute Manufacturing Overheads 42885

Absolute Cost 69185

Cost per Unit $2306.16

7. Selling Price for P

Absolute Cost of P...............................................................................$104275

Imprint Up...........................................................................................$38940

Selling Price......................................................................................$ 143215

Cost per unit.....................................................................................$7160.75

Selling Price for Q

Absolute Cost of Q ..............................................................................69185

Markup ......................................................................................... 34308

Selling Price ................................................................................103493

Cost per unit...................................................................................$3449.76

8. Cost of Goods Sold for March...................................................$173460

Answer details:

Subject: Business

Level: High school

Keywords:

• Absolute cost

• Selling price

• Cost per unit

• Markup

• Fixed manufacturing overhead

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