[The following information applies to the questions displayed below.] 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 $31,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.20 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 2,500 $ 13,750 $ 2.90 Fabrication 1,500 $ 17,250 $ 3.70 Total 4,000 $ 31,000 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Direct labor cost Job P $ 28,000 $ 33,000 Job Q $ 15,500 $ 13,500 Actual machine-hours used: Molding Fabrication 3,200 2,100 5,300 2,300 2,400 4,700 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
[The following information applies to the questions displayed below.] 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 $31,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.20 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 2,500 $ 13,750 $ 2.90 Fabrication 1,500 $ 17,250 $ 3.70 Total 4,000 $ 31,000 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Direct labor cost Job P $ 28,000 $ 33,000 Job Q $ 15,500 $ 13,500 Actual machine-hours used: Molding Fabrication 3,200 2,100 5,300 2,300 2,400 4,700 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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.
15. What is Sweeten Company's cost of goods sold for the year? (Do not round intermediate calculations.)
X Answer is complete but not entirely correct.
Cost of goods sold
$
199,500 X
![Required information
[The following information applies to the questions displayed below.]
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 $31,000 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $3.20 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
2,500
$ 13,750
$ 2.90
Fabrication
1,500
$ 17,250
$ 3.70
Total
Estimated total machine-hours used
4,000
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
$ 31,000
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Job Q
$ 15,500
$ 13,500
Job P
Direct materials
Direct labor cost
Actual machine-hours used:
$ 28,000
$ 33,000
Molding
Fabrication
3,200
2,100
5,300
2,300
2,400
4,700
Total
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe545fd09-eb77-4890-bcfb-29db8d122cdd%2Fea284f84-da97-4689-91a9-e88235fa4a6c%2F2v51pco_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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 $31,000 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $3.20 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
2,500
$ 13,750
$ 2.90
Fabrication
1,500
$ 17,250
$ 3.70
Total
Estimated total machine-hours used
4,000
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
$ 31,000
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Job Q
$ 15,500
$ 13,500
Job P
Direct materials
Direct labor cost
Actual machine-hours used:
$ 28,000
$ 33,000
Molding
Fabrication
3,200
2,100
5,300
2,300
2,400
4,700
Total
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
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