Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 2, Problem 1F15
Sweeten Company bad 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):
Sweeten Company bad no underapplied or overapplied
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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
1. What was the company’s plantwide predetermined overhead rate?
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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 uned
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per
machine-hour
Molding Fabrication
2,700
$ 10,800
$ 1.40
1,620
$ 16,200
$ 2.20
Total
4,320
$ 27,000
Job P
$ 14,040
$22,680
Job 0
$8,640
$ 8,100
Direct materials
Direct labor cont
Actual machine-hours used:
Molding
Fabrication
1,850
650
860
960
Total
2,500
1,820
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…
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
$ 13,000
$ 21,000
1,700
600
2,300
Unit product cost
Job Q
$ 8,000
$ 7,500
800
900
1,700
Molding
2,500
$ 10,000
$ 1.40
Fabrication
1,500
$ 15,000
$2.20
Total
4,000
$ 25,000
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…
Chapter 2 Solutions
Introduction To Managerial Accounting
Ch. 2 - What is job-order costing?Ch. 2 - What is absorption costing?Ch. 2 - What is normal costing?Ch. 2 - How is the unit product cost of a job calculated?Ch. 2 - Explain the four-step process used to compute a...Ch. 2 - What is the purpose of the job cost sheet in a...Ch. 2 - Explain why some production costs must be assigned...Ch. 2 - Why do companies use predetermined overhead rates...Ch. 2 - What factors should be considered in selecting an...Ch. 2 - If a company fully allocates all of its overhead...
Ch. 2 - Prob. 11QCh. 2 - What is underapplied overhead? Overapplied...Ch. 2 - What is a plantwide overhead rate? Why are...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Harris Fabrics computes its plantwide...Ch. 2 - Luthan Company uses a plant wide predetermined...Ch. 2 - Computing Total Job Costs and Unit Product Costs...Ch. 2 - Computing Total Job Costs and Unit Product Costs...Ch. 2 - Braverman Company has two manufacturing...Ch. 2 - Job-Order Costing for a Service Company Tech...Ch. 2 - Prob. 7ECh. 2 - Newhard Company assigns overhead cost to jobs on...Ch. 2 - Taveras Corporation is currently operating at 50%...Ch. 2 - Prob. 10ECh. 2 - Varying Plantwide Predetermined Overhead Rates...Ch. 2 - Computing Predetermined Overhead Rates and Job...Ch. 2 - Departmental Predetermined Overhead Rates White...Ch. 2 - Prob. 14ECh. 2 - Plantwide and Departmental Predetermined Overhead...Ch. 2 - Plantwide Predetermined Overhead Rates; Pricing...Ch. 2 - Plantwide and Departmental Predetermined Overhead...Ch. 2 - Job-Order Costing for a Service Company Speedy...Ch. 2 - Multiple Predetermined Overhead Rates; Applying...Ch. 2 - Plantwide versus Multiple Predetermined Overhead...Ch. 2 - Plantwide versus Multiple Predetermined Overhead...
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- Cycle Specialists manufactures goods on a job order basis. During the month of June, three jobs were started in process. (There was no work in process at the beginning of the month.) Jobs Sprinters and Trekkers were completed and sold, on account, during the month (selling prices: Sprinters, 22,000; Trekkers, 27,000); Job Roadsters was still in process at the end of June. The following data came from the job cost sheets for each job. The factory overhead includes a total of 1,200 of indirect materials and 900 of indirect labor. Prepare journal entries to record the following: a. Materials used. b. Factory wages and salaries earned. c. Factory Overhead transferred to Work in Process d. Jobs completed. e. Jobs sold.arrow_forwardLuna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the plant. Prior to June 1, the predetermined overhead application rate for June was computed from the following data, based on an estimate of 5,000 direct labor hours: The factory has one production department and uses the direct labor hour method to apply factory overhead. Three jobs are started during the month, and postings are made daily to the job cost sheets from the materials requisitions and labor-time records. The following schedule shows the jobs and amounts posted to the job cost sheets: The factory overhead control account was debited during the month for actual factory overhead expenses of 27,000. On June 11, Job 2526 was completed and delivered to the customer using a mark-on percentage of 50% on manufacturing cost. On June 24, Job 2527 was completed and transferred to Finished Goods. On June 30, Job 2528 was still in process. Required: 1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs. 2. Prepare journal entries as of June 30 for the following: a. Applying factory overhead to production. b. Closing the applied factory overhead account. c. Closing the factory overhead account. d. Transferring the cost of the completed jobs to finished goods. e. Recording the cost of the sale and the sale of Job 2526.arrow_forwardAbbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?arrow_forward
- 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 Job. 0 $0,000 $7,500 $13,000 $ 21,000 1,700 600 2,300 000 900 1,700 Holding Fabrication Total 2,500 1,500 4,000 $10,000 $15,000 $25,000 $2.20 $ 1.40 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. A Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-…arrow_forwardSweeten 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 Molding Fabrication Total 1,500 $15,150 $ 2.30 2,500 $10,250 1.50 4,000 $25,400 2$ Job Q $8,500 $7,900 Job P $14,000 $21,800 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication 1,800 700 900 1,000 1,900 Total 2,500 Sweeten Company no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as…arrow_forwardSweeten 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…arrow_forward
- 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: For questions 1 to 9, assume that Sweeten Company uses…arrow_forwardSweeten 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 4,400 2,640 7,040 Estimated total fixed manufacturing overhead $ 17,600 $ 26,400 $ 44,000 Estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 Job P Job Q Direct materials $ 22,880 $ 14,080 Direct labor cost $ 36,960 $ 13,200 Actual machine-hours used: Molding 3,040 1,410 Fabrication 1,060 1,530 Total 4,100 2,940 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 6, assume that Sweeten Company…arrow_forwardSweeten 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 Pand Job Q. The following additional information is available for the company as a whole and for Jobs Pand Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 10,000 $ 15,000 $| 25,000 $ 1.40 $| 220 Estimated variable manufacturing overhead per machine-hour Job P Job Q Direct materials 13,000 8,000 Direct labor cost 21,000 7,500 Actual machine-hours used: Molding 1,700 800 Fabrication 600 900 Total 2,300 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Group of answer choices…arrow_forward
- 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 Pand Job Q. The following additional information is available for the company as a whole and for Jobs Pand Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1.500 4,000 Estimated total fixed manufacturing overhead $ 10,000 $ 15,000 $| 25,000 Estimated variable manufacturing overhead per machine-hour $| 1.40 $| 2.20 Job P Job Q Direct materials 13,000 8,000 Direct labor cost 21,000 7,500 Actual machine-hours used: Molding 1,700 800 Fabrication 600 900 Total 2,300 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. What was the total manufacturing cost assigned to Job Pusing a plantwide predetermined overhead rate (POHR)? (Do not round…arrow_forwardSweeten 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 4, 200 $ 16,800 Fabrication 2,520 $ 25, 200 Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine- 6,720 $ 42,000 hour $ 1.40 $ 2.20 Job Q $ 13,440 $ 12,600 Job P Direct materials Direct labor cost $ 21,840 $35,280 Actual machine-hours used: Molding Fabrication 2,890 1,010 1,340 1,480 Total 3,900 2,820 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…arrow_forwardthe answer in the nearest whole dollararrow_forward
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