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 2,600 1,560 4,160 Estimated total fixed manufacturing overhead $ 10,400 $ 15,600 $ 26,000 Estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 Job P Job Q Direct materials $ 13,520 $ 8,320 Direct labor cost $ 21,840 $ 7,800 Actual machine-hours used: Molding 1,780 830 Fabrication 620 930 Total 2,400 1,760 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: 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. Questions 1. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) 2. 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.) 3. What was the total manufacturing cost assigned to Job Q?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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 | 2,600 | 1,560 | 4,160 |
| Estimated total fixed manufacturing |
$ 10,400 | $ 15,600 | $ 26,000 |
| Estimated variable manufacturing overhead per machine-hour | $ 1.40 | $ 2.20 |
| Job P | Job Q | |
|---|---|---|
| Direct materials | $ 13,520 | $ 8,320 |
| Direct labor cost | $ 21,840 | $ 7,800 |
| Actual machine-hours used: | ||
| Molding | 1,780 | 830 |
| Fabrication | 620 | 930 |
| Total | 2,400 | 1,760 |
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required: 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.
Questions
1. What was the total
2. 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.)
3. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)
4. 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.)
5. 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.)
6. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)
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