Sweeten Company had no
jobs in progress at the beginning of March and no beginning inventories. It
started only two jobs during Marchâ€”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
total fixed manufacturing overhead $
variable manufacturing overhead per direct labor-hour $ 1.00
total direct labor-hours to be worked 2,000
actual manufacturing overhead costs incurred $12,500
P Job Q
13,000 $ 8,000
labor cost $ 21,000 $ 7,500
direct labor-hours worked 1,400 500
What is the companyâ€™s predetermined overhead rate?
Predetermined overhead rate $ ___per
much manufacturing overhead was applied to Job P and Job Q?
Job P Job Q
overhead applied $ ___ $___
3. What is the direct labor hourly wage rate?
Job P Job Q
labor hourly wage rate___$ ___$
If Job P included 20 units, what is its 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.
Assume that the company does not use any indirect labor. Prepare the journal
entry to record the direct labor costs added to production.
Prepare the journal entry to apply manufacturing overhead to production.