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):
1-What is the company’s predetermined overhead rate?
2-How much manufacturing overhead was applied to Job P and Job Q?
3-What is the direct labor hourly wage rate?
4-If Job P includes 20 units, what is its unit product cost? What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?
5-Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production.
6-Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production.
7-Prepare the journal entry to apply manufacturing overhead costs to production.
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-Prepare the journal entry to transfer costs from Work in Process to Finished Goods.
10-Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.
11-Prepare a schedule of cost of goods sold. (Stop after computing the unadjusted cost of goods sold.)
12-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.