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

Accounting Oct 26, 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). Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,580 1,500 4,800 $11,000 $15,600 $26, 680 $ 1.89 $ 2.60 Job P $17,000 $24,200 Job $10,000 $ 9, 100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,100 1,800 3,109 1,200 1,300 2,500 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-8assume 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, 4. If Job P included 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

Calculation of Pre-determined Overhead Rate

Pre determined overhead rate =Estimated total overhead/ Estimated Machine hours

Estimated total overhead= 26600+ 2500*1.8 +1500*2.60 =$35000
Estimated machine hours =4000

Pre determined overhead rate=35000/4000 =$8.75

Calculation of Unit product cost

Direct materials 17000
Direct labor 24200
Overhead 8.75*3100=27125
   
Total Cost 68325
Unit product cost 68325/20=$3416.25
   
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