Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company...
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Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 24,000 $ 760,000 $ 5.00 Fabrication 35,000 $ 280,000 $ 1.50 Total 59,000 $ 1,040,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Total $ 690,000 $ 360,000 24,000 Molding $ 370,000 $ 220,000 13,000 Fabrication $ 320,000 $ 140,000 11,000 Job C-200 Molding Direct materials cost $ 220,000 Direct labor cost Machine-hours $ 120,000 11,000 Fabrication $ 240,000 $ 280,000 24,000 $ 460,000 $ 400,000 35,000 Total Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 24,000 $ 760,000 $ 5.00 Fabrication 35,000 $ 280,000 $ 1.50 Total 59,000 $ 1,040,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Total $ 690,000 $ 360,000 24,000 Molding $ 370,000 $ 220,000 13,000 Fabrication $ 320,000 $ 140,000 11,000 Job C-200 Molding Direct materials cost $ 220,000 Direct labor cost Machine-hours $ 120,000 11,000 Fabrication $ 240,000 $ 280,000 24,000 $ 460,000 $ 400,000 35,000 Total Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?
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Delph Company JobOrder Costing 1 Departmental Predetermined Overhead Rates a Molding Department Pred... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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