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7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

User Anurag H
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Answer:

What selling price would the company have established for Jobs P and Q?

  • Job P = $84,996
  • Job Q = $61,632

What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?

  • Job P = $4,250 per unit
  • Job Q = $2,054 per unit

Step-by-step explanation:

a lot of information is missing, so I looked for a similar question in order to determine the costs of Jobs P and Q:

Molding Fabrication Total

machine-hours used 2,500 1,500 4,000

fixed manufacturing overhead $10,000 $15,000 $25,000

variable man. overhead $1.40 $2.20

per machine-hour

Job P Job Q

Direct materials $13,000 $8,000

Direct labor cost $21,000 $7,500

Machine-hours used:

  • Molding 1,700 800
  • Fabrication 600 900
  • Total 2,300 1,700

variable overhead $3,220 $3,740

fixed overhead $10,000 $15,000

total costs $47,220 $34,240

cost per unit $2,2361 $1,141.33

total markup $37,776 $27,392

total selling price $84,996 $61,632

selling price per unit $4,249.80 $2,054.40

User Sherbrow
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