Sweeten Company had no jobs in progress at the beginning of

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 4,000 $12,250 $16,350 $28,600 2,500 1,500 $2.30 3.10 Job Q $22,000 $12,500 $28,200 $11,100 Job P Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,600 1,500 4,100 1,700 1,800 3,500 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month Requirec 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 2-15 15. What was Sweeten Company\'s cost of goods sold for March? (Do not round intermediate calculations.)

Solution

Predetermined overhead rate Molding department 7.20 =2.3+(12250/2500) Fabrication department 14.00 =3.1+(16350/1500) 15 Job P Job Q Direct materials 22000 12500 Direct labor 28200 11100 Overhead: Molding department 18720 12240 Fabrication department 21000 25200 Total cost 89920 61040 Cost of goods sold for March = 89920+61040= 150960