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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $14,560 $ 23,520 1,930 670 2,600 Job Q $8,960 $8,400 900 980 1,880 Molding Fabrication 2,800 1,680 $ 11,200 $ 16,800 $ 1.40 $ 2.20 Total 4,480 $28,000 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine- hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. 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? (Do not round intermediate calculations. Round your final answers to nearest whole

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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):
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per
machine-hour
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Total
Job P
$14,560
$ 23,520
Total price for the job
Selling price per unit
1,930
670
2,600
Job P
$ 102.017
S
5,101
Answer is complete but not entirely correct.
Job Q
S
Job Q
$ 8,960
$ 8,400
Molding
2,800
$ 11,200
$ 1.40
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-
hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions
10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation
base.
61,517
2,051
900
980
1,880
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? (Do not round intermediate calculations. Round your final answers to nearest whole
dollar)
Fabrication
1,680
$ 16,800
$ 2.20
Total
4,480
$ 28,000
Transcribed Image Text: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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $14,560 $ 23,520 Total price for the job Selling price per unit 1,930 670 2,600 Job P $ 102.017 S 5,101 Answer is complete but not entirely correct. Job Q S Job Q $ 8,960 $ 8,400 Molding 2,800 $ 11,200 $ 1.40 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine- hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. 61,517 2,051 900 980 1,880 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? (Do not round intermediate calculations. Round your final answers to nearest whole dollar) Fabrication 1,680 $ 16,800 $ 2.20 Total 4,480 $ 28,000
13
14
15
Job Q unit product cost
Direct materials
Direct labor
Manufacturing overhead applied (see #11 above)
Total mfg. costs
Number of units in job
Unit product cost
Selling prices
Total mfg. cost
Mark up (based on 80%)
Total
Number of units in the job
Selling price per unit
Cost of goods sold
Total mfg. cost assigned to job P
Total mfg. cost assigned to job Q
Cost of goods sold
Job P
56,676
45,341
102,017
20
5,101
Job Q
8,960
8,400
14,946
32,306
30
1,077
Job Q
34,176
27,341
61,517
30
2,051
29,015
29,015
cop
copy
Transcribed Image Text:13 14 15 Job Q unit product cost Direct materials Direct labor Manufacturing overhead applied (see #11 above) Total mfg. costs Number of units in job Unit product cost Selling prices Total mfg. cost Mark up (based on 80%) Total Number of units in the job Selling price per unit Cost of goods sold Total mfg. cost assigned to job P Total mfg. cost assigned to job Q Cost of goods sold Job P 56,676 45,341 102,017 20 5,101 Job Q 8,960 8,400 14,946 32,306 30 1,077 Job Q 34,176 27,341 61,517 30 2,051 29,015 29,015 cop copy
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