Reference no: EM132723998

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

Problem 1: Prepare the journal entry to apply manufacturing overhead costs to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Problem 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. (Do not leave any empty spaces; input a 0 wherever it is required.)

Problem 3: Prepare the journal entry to transfer costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Problem 4: Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account. (Do not leave any empty spaces; input a 0 wherever it is required.)

Problem 5: Prepare a schedule of cost of goods sold. (Do not leave any empty spaces; input a 0 wherever it is required.)

Problem 6: Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Problem 7: What is the amount of underapplied or overapplied overhead?

Problem 8: Prepare the journal entry to close the amount of underapplied or overapplied overhead to the appropriate account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)