Reference no: EM132724679

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 March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labour-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 $12,000

Estimated variable manufacturing overhead per direct labour-hour $1.40

Estimated total direct labour-hours to be worked 2,400

Total actual manufacturing overhead costs incurred $14,500

Job P Job Q

Direct materials $15,000 $8,400

Direct labour $22,500 $10,500

Actual direct labour-hours worked 1,500 700

Required -

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

2. Assume the ending raw materials inventory is $1,400 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured.

3. Prepare the journal entry to transfer costs from Work in Process to Finished Goods.

4. Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.

5. Prepare a schedule of cost of goods sold.

6. Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold.

7. What is the amount of underapplied or overapplied overhead?

8. Prepare the journal entry to close the amount of underapplied or overapplied overhead to the appropriate account.