Reference no: EM132599214

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

Question 1: 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

Question 2: 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.

Question 3: 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.

Question 4: 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.

Question 5: 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.

Question 6: What is the amount of underapplied or overapplied overhead?

Question 7: Prepare the journal entry to close the amount of underapplied or overapplied overhead to Cost of Goods Sold.

Question 8: 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.