5.

Required information

[The following information applies to the questions displayed below.]

Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:

	Molding		Fabrication			Total
Machine-hours		31,000		41,000		72,000
Fixed manufacturing overhead costs	$	770,000	$	280,000	$	1,050,000
Variable manufacturing overhead cost per machine-hour	$	5.70	$	5.70

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-70 and Job C-200. It provided the following information related to those two jobs:

Job D-70:	Molding		Fabrication		Total
Direct materials cost	$	373,000	$	321,000	$	694,000
Direct labor cost	$	220,000	$	170,000	$	390,000
Machine-hours		22,000		9,000		31,000

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	210,000	$	300,000	$	510,000
Direct labor cost	$	100,000	$	250,000	$	350,000
Machine-hours		9,000		32,000		41,000

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. 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 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delphs cost of goods sold for the year?