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 March and Job Q was incomplete at the end of 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 $ 14,800 Estimated variable manufacturing overhead per direct labor-hour $ 1.60 Estimated total direct labor-hours to be worked 3,700 Total actual manufacturing overhead costs incurred $ 21,000
Job P Job Q Direct materials $ 14,400 $ 9,700 Direct labor cost $ 44,800 $ 12,000 Actual direct labor-hours worked 2,800 750 Q1. If Sweeten Company requisitioned $28,200 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred?
Q2. If Sweeten Companyâs labor time tickets totaled $62,400 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?
Q3. Calculate the cost of goods sold using the direct method.
Q4. Calculate the cost of goods sold using the direct method.
Q5. Calculate the cost of goods sold using the indirect method.
Q6. How would you revise your answer to question 11 if the company had beginning work in process inventory of $9,700?
Q7.How would you revise your answer to question 12 if the company had beginning finished goods inventory of $13,700?
Q8. Assume that Job P includes 24 units that each sell for $3,700 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 March and Job Q was incomplete at the end of 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 | $ | 14,800 | |
| Estimated variable manufacturing overhead per direct labor-hour | $ | 1.60 | |
| Estimated total direct labor-hours to be worked | 3,700 | ||
| Total actual manufacturing overhead costs incurred | $ | 21,000 | |
| Job P | Job Q | |||||
| Direct materials | $ | 14,400 | $ | 9,700 | ||
| Direct labor cost | $ | 44,800 | $ | 12,000 | ||
| Actual direct labor-hours worked | 2,800 | 750 | ||||
| Q1. If Sweeten Company requisitioned $28,200 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred? Q2. If Sweeten Companyâs labor time tickets totaled $62,400 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred? Q3. Calculate the cost of goods sold using the direct method. Q4. Calculate the cost of goods sold using the direct method. Q5. Calculate the cost of goods sold using the indirect method. Q6. How would you revise your answer to question 11 if the company had beginning work in process inventory of $9,700? Q7.How would you revise your answer to question 12 if the company had beginning finished goods inventory of $13,700? Q8. Assume that Job P includes 24 units that each sell for $3,700 and that the companyâs selling and administrative expenses in March were $10,000. Prepare an absorption costing income statement for March. | ||||||
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 | ||
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 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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