Problem
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):
Estimated total fixed manufacturing overhead $ 14,500
Estimated variable manufacturing overhead per direct labor-hour $ 1.90
Estimated total direct labor-hours to be worked 2,900
Total actual manufacturing overhead costs incurred $ 18,000
Job P Job Q
Direct materials $ 18,500 $ 8,900
Direct labor cost $ 40,000 $ 10,000
Actual direct labor-hours worked 2,000 500.
1. Prepare the journal entry to apply manufacturing overhead costs to production.
2. Assume the ending raw materials inventory is $1,900 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured