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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories

Accounting Oct 12, 2020

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 $10,000 $ 15,000 $25,000 Estimated variable manufacturing overhead per machine-hour $ 2.20 $ 1.40 Job P $13,000 $21,000 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job O $8,000 $7,500 1,700 600 2,300 800 900 1,700 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 2-4 4. If Job Pincluded 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost

Expert Solution

Jop P Unit product cost = Total manufacturing cost / Total units

Total manufacturing cost = Direct material + direct labor cost + manufacture overheads

= $13,000 + $21,000 + $18,285

= $52,285

Unit product cost = $52,285 / 20 units = $2,614.25

Working notes:

Estimated total overhead = Estimated Total fixed manufacturing overhead + variable overhead molding + variable overhead fabrication

= $25,000 + (2,500*$1.40) + (1,500*$2.20)

= $31,800

Plant wide predetermined rate = Estimated total overhead / Estimated total machine hours

= $31,800 / 4,000

= $7.95

Jop P Manufacturing overhead =  Predetermine overhead rate * Machine hours

= $7.95 * 2,300

= $18,285

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