5. What is the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) Total manufacturing cost Show Transcribed Text 6. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost Show Transcribed Text Total price for the job Selling price per unit 2 Job P 7. 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. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Job Q 2 C

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.

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 year-Job 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 period's estimated level of production. Sweeten also estimated $25,800 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $1.90 per machine-hour.
Because Sweeten has two manufacturing departments-Molding and Fabrication-it 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:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Estimated total machine-hours used
Estimated total fixed manufacturing overhead.
Estimated variable manufacturing overhead per machine-hour i
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Job P
$ 15,000
$ 22,600
Molding Fabrication
2,500
1,500
$ 10,500
$ 1.60
1,900
800
2,700
Job 0
$ 9,000
$ 8,300
Total
4,000
$ 15,300. $ 25,800
$ 2.40
1,000
1,100
2,100
Total
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.
Transcribed Image Text: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 year-Job 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 period's estimated level of production. Sweeten also estimated $25,800 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.90 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Estimated total machine-hours used Estimated total fixed manufacturing overhead. Estimated variable manufacturing overhead per machine-hour i The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 15,000 $ 22,600 Molding Fabrication 2,500 1,500 $ 10,500 $ 1.60 1,900 800 2,700 Job 0 $ 9,000 $ 8,300 Total 4,000 $ 15,300. $ 25,800 $ 2.40 1,000 1,100 2,100 Total 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.
5. What is the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)
Total manufacturing cost
Show Transcribed Text
6. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to
nearest whole dollar.)
Unit product cost
Show Transcribed Text
7. 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. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish
for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations.
Round your final answers to nearest whole dollar.)
Total price for the job
Selling price per unit
Job P
Show Transcribed Text
Cost of goods sold
8. What is Sweeten Company's cost of goods sold for the year? (Do not round intermediate calculations.)
Show Transcribed Text
Job Q
3
Molding Department
Fabrication Department
9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your
answers to 2 decimal places.)
Predetermined Overhead
per MH
per MH
Rate
Ĉ
Transcribed Image Text:5. What is the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) Total manufacturing cost Show Transcribed Text 6. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost Show Transcribed Text 7. 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. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Total price for the job Selling price per unit Job P Show Transcribed Text Cost of goods sold 8. What is Sweeten Company's cost of goods sold for the year? (Do not round intermediate calculations.) Show Transcribed Text Job Q 3 Molding Department Fabrication Department 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) Predetermined Overhead per MH per MH Rate Ĉ
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