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 $28,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.60 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: Molding Fabrication Total 2,500 1,500 4,000 $28,600 Estimated total machine-hours used Estimated total fixed manufacturing overhead $ 12,250 Estimated variable manufacturing overhead per machine-hour $ 2.30 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P Job Q $12,500 $ 22,000 $ 28,200 $ 11,100 $ 16,350 $ 3.10 Direct materials Direct labor cost Actual machine-hours used: Molding 2,600 1,700 Fabrication 1,500 1,800 Total 4,100 3,500 Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 15. What is Sweeten Company's cost of goods sold for the year?
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 $28,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.60 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: Molding Fabrication Total 2,500 1,500 4,000 $28,600 Estimated total machine-hours used Estimated total fixed manufacturing overhead $ 12,250 Estimated variable manufacturing overhead per machine-hour $ 2.30 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P Job Q $12,500 $ 22,000 $ 28,200 $ 11,100 $ 16,350 $ 3.10 Direct materials Direct labor cost Actual machine-hours used: Molding 2,600 1,700 Fabrication 1,500 1,800 Total 4,100 3,500 Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 15. What is Sweeten Company's cost of goods sold for the year?
Chapter1: Financial Statements And Business Decisions
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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.
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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 $28,600 of
fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.60 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:
Molding Fabrication Total
2,500 1,500
Estimated total machine-hours used
4,000
Estimated total fixed manufacturing overhead
$ 12,250
$ 16,350
$28,600
Estimated variable manufacturing overhead per machine-hour $2.30 $ 3.10
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Job P
Job Q
$ 22,000
$12,500
$ 28,200 $11,100
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
2,600 1,700
Fabrication
1,500 1,800
Total
4,100 3,500
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
15. What is Sweeten Company's cost of goods sold for the year?
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