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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.
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