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NikAS [45]
2 years ago
11

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 $12,000 $16,200 $28,200
Estimated variable manufacturing overhead per machine-hour $2.20 $3.00
Job P Job Q
Direct materials $21,000 $12,000
Direct labor cost $27,400 $10,700
Actual machine-hours used:
Molding 2,500 1,600
Fabrication 1,400 1,700
Total 3,900 3,300
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1 and 2, assume that Sweeten Company uses a plant-wide predetermined overhead rate with machine-hours as the allocation base.
For questions 3-9, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
1) Assume that Sweeten Company uses 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 assuming 20 units were produced for Job P and 30 units were produced for Job Q?
2) What was Sweeten Company's cost of goods sold for March?
3) What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department?
4) How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
5) How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
6) If Job P included 20 units, what was its unit product cost?
7) If Job Q included 30 units, what was its unit product cost?
8) 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 assuming 20 units were produced for job P and 30 units were produced for job Q?
9) What was Sweeten Company's cost of goods sold for March?
Business
1 answer:
AlladinOne [14]2 years ago
8 0

Answer:

Sweeten Company

1. Jobs during March   Job P         Job Q

Direct materials        $21,000     $12,000

Direct labor cost      $27,400      $10,700

Overhead cost =      $37,245      $31,515

Total manufacturing

 costs                     $85,645      $54,215

Markup (80%)            68,516        43,372

Total Selling price  $154,161      $97,587

Units produced            20              30

Unit selling price $7,798.05  $3252.90

Workings:

M. Overhead rate        $9.55       $9.55      

Total machine hours   3,900       3,300

Overhead cost =     $37,245    $31,515

2. Cost of goods sold for March = $139,860 ($85,645 + $54,215)

3. Company's predetermined overhead rates:

Molding Department          $7.00 Fabrication Department    $13.80

4. Manufacturing Overhead applied:

                         Job P     Job Q   Overhead Rate

Molding            2,500      1,600          $7.00

Overhead

 applied         $17,500  $11,200

5. Overhead applied

                         Job P     Job Q   Overhead Rate

Fabrication        1,400      1,700         $13.80

Overhead

 applied         $19,320  $23,460

                                    Job P         Job Q

Direct materials        $21,000      $12,000

Direct labor cost      $27,400      $10,700

Overhead applied    $19,320     $23,460

Total cost                 $67,720      $46,160

Units produced          20                30

Unit cost                  $3,386       $1,538.67

6. Unit cost of P = $3,386

7. Unit cost of Q = $1,538.67

8.                                 Job P         Job Q

Total cost                 $67,720      $46,160

Mark-up (80%)            54,176       36,928

Total Selling price  $121,896      $83,088

Unit Selling price      $6,094.80    $2,769.60

9. Cost of goods sold for March = $113,880 ($67,720 + $46,160)

Explanation:

Departments:

                                                                     Molding   Fabrication     Total

Estimated total machine-hours used             2,500      1,500          4,000

Estimated total manufacturing overhead

     Fixed                                                      $12,000  $16,200     $28,200

     Variable per machine-hour                      $2.20      $3.00

     Variable manufacturing overhead        $5,500    $4,500     $10,000

Estimated total manufacturing overhead $17,500  $20,700     $38,200

Predetermined overhead rate =

Estimated total manufacturing overhead / estimated total machine hours used                                                               $7.00     $13.80          $9.55

 

Jobs during March   Job P         Job Q

Direct materials      $21,000   $12,000

Direct labor cost    $27,400    $10,700

Actual machine-hours used:

Molding                      2,500        1,600

Fabrication                 1,400         1,700

Total                          3,900        3,300

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