Question :

Sweeten Company had no jobs in progress at the starting of March and no beginning inventories. It started only two jobs during March- Job Q and Job P. 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 subsequent additional information is required for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Evaluate total fixed manufacturing overhead      $10,000

Evaluate variable manufacturing overhead per direct labor-hour               $1.00

Determine total direct labor-hours to be worked              2,000

Net 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. Determine the company's predetermined overhead rate?

Predetermined overhead rate   $ ___per DLH

2. How much manufacturing overhead was applied to Job Q and Job P?

Job P     Job Q

Manufacturing overhead applied             $ ___ $___

3. Determine 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. Evaluate the total amount of manufacturing cost assigned to Job Q as of the end of March?

Total manufacturing cost___      $

5. Suppose the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Purpose the journal entries to record raw materials purchases and the issuance of direct materials for use in production.

6. Consider that the company does not use any indirect labor. Purpose the journal entry to record the direct labor costs added to production.

7. Purpose the journal entry to apply manufacturing overhead to production.