Question

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		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	12,750		$	16,650		$	29,400
Estimated variable manufacturing overhead per machine-hour	$	2.50		$	3.30

	Job P			Job Q
Direct materials	$	24,000		$	13,500
Direct labor cost	$	29,800		$	11,900
Actual machine-hours used:
Molding		2,800			1,900
Fabrication		1,700			2,000
Total		4,500			3,900

Sweeten Company had 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 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

12. If Job P included 20 units, what was its unit product cost?

13. . 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 assuming 20 units were produced for Job P and 30 units were produced for Job Q?

	Job P	Job Q
Total price for the job	$179,055	$116,973
Selling price per unit	$8,953	$3,899

15. What was Sweeten Company’s cost of goods sold for March?

Answer 1