Answered Essay: Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has tw

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: lding Fabrication totali. 2,500 4,000 $14,750 $17,850 $32,600 1,500 Estimated total machine-hours used Estinated total fixed manufacturing overhead Estinated variable manafacturing overhead per machine-hour Part 12 of 15 3.30 4.10 0.26 points JobP Jobo 32,00 $17,500 36,200 $15,100 Direet materiale Dareet labor cost Actual machine-hours used: Molding rabrication Total 2,500 6.100 3,600 2,700 2,800 5,500 elBlook 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 Foundational 2-12 12. If Job P included 20 units, what was its unit product cost? (Do not round Intermediate calculations.)

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): Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. 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. If Job P included 20 units, what was its unit product cost? Unit product cost

Expert Answer

 

Departmental predetermined overhead rates = Total manufacturing overhead rate/Total machine hours
Molding = $14750/2500 MH $5.9 Per Machine Hour
Fabrication = $17850/1500 MH $11.9 Per Machine Hour
Job P Job Q
Direct Material $32,000 $17,500
Direct Labour $36,200 $15,100
Variable manufacturing overhead – Molding ($3.30 x 3600AMH);($4.10 x 2700 AMH) $11,880 $11,070
Variable manufacturing overhead – Fabrication ($3.30 x 2500AMH);($4.10 x 2800 AMH) $8,250 $11,480
Fixed manufacturing overhead – Molding ($5.90 x 3600AMH);($11.90 x 2700 AMH) $21,240 $32,130
Fixed manufacturing overhead – Fabrication ($5.90 x 2500 AMH);($11.90 x 2800 AMH) $14,750 $33,320
Total Product Cost $124,320 $120,600
Total Units 20
P’s product unit cost = $124,320/20 $6,216
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