Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchâJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead $ 13,200 Estimated variable manufacturing overhead per direct labor-hour $ 1.20 Estimated total direct labor-hours to be worked 3,300 Total actual manufacturing overhead costs incurred $ 17,000
Direct Materials Job P: $17,500 Job Q: $9,300
Direct Labor Cost Job P: $43,200 Job Q: $11,700
Actual direct labor hours worked Job P: 2,400 Job Q: 650
-Prepare the journal entry to apply manufacturing overhead costs to production
-Assume the ending raw materials inventory is $2,300 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured.
-Prepare the journal entry to transfer costs from Work in Process to Finished Goods.
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Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.
-Prepare a schedule of cost of goods sold.
-Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold
-What is the amount of underapplied or overapplied overhead?
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Prepare the journal entry to close the amount of underapplied or overapplied overhead to Cost of Goods Sold.
-Assume that Job P includes 20 units that each sell for $4,500 and that the companyâs selling and administrative expenses in March were $10,000. Prepare an absorption costing income statement for March.
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchâJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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):
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