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Sweeten Company had no jobs in progress at th

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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 plant wide 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;8. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured;9. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entry to transfer costs from Work in Process to Finished Goods.;10. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials.Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.;11. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare a schedule of cost of goods sold.;12. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold.;13. What is the amount of underapplied or overapplied overhead?;14.Prepare the journal entry to close the amount of underapplied or overapplied overhead to Cost of Goods Sold.;15. Assume that Job P includes 20 units that each sell for $3,000 and that the company?s selling and administrative expenses in March were $14,000.Prepare an absorption costing income statement for March.

 

Paper#77634 | Written in 18-Jul-2015

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