Question & Answer: he company has two manufacturing departments–Molding and Fabrication. It started, completed, and sold on…..

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):

	Molding		Fabrication		Total
Estimated total machine-hours used		2,500		1,500		4,000
Estimated total fixed manufacturing overhead	$	15,000	$	18,000	$	33,000
Estimated variable manufacturing overhead per machine-hour	$	3.40	$	4.20

	Job P		Job Q
Direct materials	$	33,000	$	18,000
Direct labor cost	$	37,000	$	15,500
Actual machine-hours used:
Molding		3,700		2,800
Fabrication		2,600		2,900
Total		6,300		5,700
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Don't use plagiarized sources. Get Your Custom Essay on Question & Answer: he company has two manufacturing departments–Molding and Fabrication. It started, completed, and sold on….. GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE Order Essay 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?(Round your answer to 2 decimal places.) 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) 4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) 6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 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 assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) 8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.) 9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) 10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.) 13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 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 assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Expert Answer

Req 1:
Total Overheads of Plant
Total variable overheads:
Molding(2500 MH @3.40): $ 8500
fabrication (1500 MH @ 4.20): $6300
Total Variable Overheads:		14800
Total fixed Overheads:		33000
Total Overheads of Plant		47800
Total Machine hours		4,000
Pre-determined overheads rate		11.95
(Total overhed=ads/ Total labour hours)

Req2:
Overheads applied
	Job P	Job Q
Total machine hours	6300	5700
Overhead rate per MH	11.95	11.95
Overheads applied	75285	68115

Req 3:
Manufacturing cost of JObP:
Material cost		33000
Labour cost		37000
Overheads applied		75285
Total manufacturing cost		145285

Req 4: Unit cost of Job P
Total Manufacturing cost		145285
Divide: Number of Units		20
Unit cost		7264

Req 5: manufacturing cost of Job Q:
Material cost		18000
Labour cost		15500
Overheads applied		68115
Total manufacturing cost		101615

Req 6:
Unit cost of Job Q
Total Manufacturing cost		101615
Divide: Number of Units		30
Unit cost		3387

Req 7:
		Job P	Job Q
Total manufacturing cost		145285	101615
Add: Mark up @80% of cost		116228	81292
Total Sales price of Jobs		261513	182907
Number of units		20	30
Selling price per unit		13076	6097

Req 8:
Cost of Goods sold(both Job P and Q has been sold)
Manufacturing cost of Job P		145285
Manufacturing cost of Job Q		101615
Total cost of goods sold		246900

Req9:
		Molding	Fabrication
Total Fixed overheads		15000	18000
Number of MH		2500	1500
Fixed OH per MH		6	12
Variable OH per MH		3.4	4.2
Total Deptt. OH per MH		9.4	16.2

Req 10:
		Job P	Job Q
Molding Deptt. MH used		3700	2800
Overheads rate of Molding		9.4	9.4
Overheads of Molding applied		34780	26320

Req 11:
		Job P	Job Q
Fabriaction Deptt. MH used		2600	2900
Overheads rate of fabrication		16.2	16.2
Overheads of fabrication applied		42120	46980

Req 12:
Unit product cost of Job P
Material cost		33000
Labour cost		37000
Overheads applied
Molding		34780
fabrication		42120
Total manufacturing Cost		146900
Number of units		20
Unit cist of Job P		7345

Req 13: Unit Product of Job Q:
Material cost		18000
Labour cost		15500
Overheads applied
Molding		26320
fabrication		46980
Total manufacturing Cost		106800
Number of units		30
Unit cist of Job P		3560

Req 14: Selling price
		Job P	Job Q
manufacturing cost		146900	106800
Add: mark up @80% of cost		117520	85440
Sales price of Jobs		264420	192240
Divide Number of units		20	30
Sselling price per unit		13221	6408

Req 15: Cost of Goods sold
(both the jobs have been sold)
Total manufacturing cost of Job P			146900
Total manufacturing cost of Job Q:			106800
Total Cost of Goods sold			253700

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