Problem

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 $ 14,500
Estimated variable manufacturing overhead per direct labor-hour $ 1.90
Estimated total direct labor-hours to be worked 2,900
Total actual manufacturing overhead costs incurred $ 18,000

                                                       Job P             Job Q
Direct materials                                 $ 18,500        $ 8,900
Direct labor cost                                $ 40,000        $ 10,000
Actual direct labor-hours worked         2,000            500.

1. Prepare the journal entry to apply manufacturing overhead costs to production.

2. Assume the ending raw materials inventory is $1,900 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured