nework Required Information The following intformation appli

nework Required Information The following intformation applies to the questions displayed belowJ 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 compary as a whole and for Jobs P and Q (all data and questions relate to the month of March Estinated total machine-hours used Estimated total fixed manufacturing overhead Estinated variable manufacturing overhead per machine-hour 4, 000 610,000 15,000 f25,000 2, 500 1, 500 1.40 2.20 Job P JobQ Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 13,000 8,000 421, 000 47, 500 1,700800 900 2,300 1,700 600 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 tne company uses departmental predetermined overhead rates with machine-hours as the allocation base in both depertments 8. What was Sweeten Company\'s cost of goods sold for March? (De net round Intermediete calculetions.) Prev . 8 9 10 15 of19.1 Net

Solution

Predetermined overhead rate: Fixed manufacturing overhead 6.25 =25000/4000 Variable manufacturing overhead 1.7 =((2500*1.4)+(1500*2.2))/4000 7.95 Job P Job Q Direct materials 13000 8000 Direct labor 21000 7500 Manufacturing overhead 18285 13515 Total Manufacturing cost 52285 29015 8 Cost of goods sold = 52285+29015= 81300