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Accounting

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solution


Question

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March?Job 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 $ 10,000;Estimated variable manufacturing overhead per direct labor-hour $ 1.00;Estimated total direct labor-hours to be worked 2,000;Total actual manufacturing overhead costs incurred $ 12,500;Job P Job Q;Direct materials $ 13,000 $ 8,000;Direct labor cost $ 21,000 $ 7,500;Actual direct labor-hours worked 1,400 500;1. What is the company?s predetermined overhead rate?;Predetermined overhead rate $ ___per DLH;2.;How much manufacturing overhead was applied to Job P and Job Q?;Job P Job Q;Manufacturing overhead applied $ ___ $;3. What is the direct labor hourly wage rate?;Job P Job Q;Direct labor hourly wage rate___$ ___$;4. Required;a. If Job P included 20 units, what is its unit product cost?;Unit product cost___ $;b. What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?;Total manufacturing cost___ $;5. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production.;6. Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production.;7. Prepare the journal entry to apply manufacturing overhead to production

 

Paper#77633 | Written in 18-Jul-2015

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