Sweeten Company had no jobs in progress at the beginning ofMarch and no beginning inventories. It started only two jobs duringMarchâJob P and Job Q. Job P was completed and sold by the end ofthe March and Job Q was incomplete at the end of the March. Thecompany uses a plantwide predetermined overhead rate based ondirect labor-hours. The following additional information isavailable for the company as a whole and for Jobs P and Q (all dataand questions relate to the month of March):
Estimated total fixed manufacturing overhead $ 14,400 Estimatedvariable manufacturing overhead per direct labor-hour $ 1.50 Estimatedtotal direct labor-hours to be worked 3,600 Total actualmanufacturing overhead costs incurred $ 19,500
Job P Job Q Direct materials $ 15,000 $ 9,600 Direct labor cost $ 40,500 $ 12,000 Actual direct labor-hoursworked 2,700 800
1. Assume the ending raw materials inventory is $2,600 and thecompany does not use any indirect materials. Prepare a schedule ofcost of goods manufactured.
2. Prepare the journal entry to transfer costs from Work inProcess to Finished Goods
3. Prepare a schedule of cost of goods sold.
Sweeten Company had no jobs in progress at the beginning ofMarch and no beginning inventories. It started only two jobs duringMarchâJob P and Job Q. Job P was completed and sold by the end ofthe March and Job Q was incomplete at the end of the March. Thecompany uses a plantwide predetermined overhead rate based ondirect labor-hours. The following additional information isavailable for the company as a whole and for Jobs P and Q (all dataand questions relate to the month of March): |
| Estimated total fixed manufacturing overhead | $ | 14,400 |
| Estimatedvariable manufacturing overhead per direct labor-hour | $ | 1.50 |
| Estimatedtotal direct labor-hours to be worked | 3,600 | |
| Total actualmanufacturing overhead costs incurred | $ | 19,500 |
| Job P | Job Q | |||
| Direct materials | $ | 15,000 | $ | 9,600 |
| Direct labor cost | $ | 40,500 | $ | 12,000 |
| Actual direct labor-hoursworked | 2,700 | 800 | ||
1. Assume the ending raw materials inventory is $2,600 and thecompany does not use any indirect materials. Prepare a schedule ofcost of goods manufactured.
2. Prepare the journal entry to transfer costs from Work inProcess to Finished Goods
3. Prepare a schedule of cost of goods sold.
Related questions
Sweeten Company had no jobs in progress at the beginning ofMarch and no beginning inventories. It started only two jobs duringMarchâJob P and Job Q. Job P was completed and sold by the end ofthe March and Job Q was incomplete at the end of the March. Thecompany uses a plantwide predetermined overhead rate based ondirect labor-hours. The following additional information isavailable for the company as a whole and for Jobs P and Q (all dataand questions relate to the month of March): |
| Estimated total fixed manufacturing overhead | $ | 14,400 |
| Estimatedvariable manufacturing overhead per direct labor-hour | $ | 1.50 |
| Estimatedtotal direct labor-hours to be worked | 3,600 | |
| Total actualmanufacturing overhead costs incurred | $ | 19,500 |
| Job P | Job Q | ||||
| Direct materials | $ | 15,000 | $ | 9,600 | |
| Direct labor cost | $ | 40,500 | $ | 12,000 | |
| Actual direct labor-hoursworked | 2,700 | 800 | |||
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2. Prepare a schedule of cost of goods sold
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4.
Assume that Job P includes 35 units that each sell for $2,600and that the companyâs selling and administrative expenses in Marchwere $13,000. Prepare an absorption costing income statement forMarch. |
Sweeten Company had no jobs in progress at the beginning ofMarch and no beginning inventories. It started only two jobs duringMarchâJob P and Job Q. Job P was completed and sold by the end ofthe March and Job Q was incomplete at the end of the March. Thecompany uses a plantwide predetermined overhead rate based ondirect labor-hours. The following additional information isavailable for the company as a whole and for Jobs P and Q (all dataand questions relate to the month of March): |
| Estimated total fixed manufacturing overhead | $ | 15,000 |
| Estimated variablemanufacturing overhead per direct labor-hour | $ | 2.00 |
| Estimated totaldirect labor-hours to be worked | 3,000 | |
| Total actualmanufacturing overhead costs incurred | $ | 19,000 |
| Job P | Job Q | |||
| Direct materials | $ | 19,500 | $ | 9,000 |
| Direct labor cost | $ | 31,500 | $ | 7,500 |
| Actual direct labor-hoursworked | 2,100 | 500 | ||
9. Prepare the journal entry to transfer costs from Work inProcess to Finished Goods.
10. Prepare a completed Work in Process T-account including thebeginning and ending balances and all debits and credits posted tothe account.
11. Prepare a schedule of cost of goods sold.
12. Prepare the journal entry to transfer costs from FinishedGoods to Cost of Goods Sold
13. What is the amount of underapplied or overappliedoverhead?
| 14. Prepare the journal entry to close the amount ofunderapplied or overapplied overhead to Cost of Goods Sold 15 Assume that Job P includes 30 units that each sell for $2,800and that the companyâs selling and administrative expenses in Marchwere $10,500. Prepare an absorption costing income statement forMarch |
