Question
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
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
21,000
$ 780,000
$ 4.00
Fabrication
30,000
$ 280,000
$ 1.50
Total
51,000
$ 1,060,000
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
Molding
$ 370,000
$ 220,000
14,000
Fabrication
$ 320,000
$ 140,000
7,000
Job C-200
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 260,000
$ 160,000
7,000
Fabrication
300,000
$ 260,000
23,000
Total
158880
Total
$ 560,000
$ 420,000
30,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Me
rav
Hill
2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours.
- Compute the plantwide predetermined overhead rate.
- Compute the total manufacturing cost assigned to Job D-70 and Job C-200
- If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?
- What is Delph's cost of goods sold for the year?
[The following information applies to the questions displayed below.] 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: 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: Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Deiph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C.200 c. If Deiph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delphis 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
21,000
$ 780,000
$ 4.00
Fabrication
30,000
$ 280,000
$ 1.50
Total
51,000
$ 1,060,000
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
Molding
$ 370,000
$ 220,000
14,000
Fabrication
$ 320,000
$ 140,000
7,000
Job C-200
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 260,000
$ 160,000
7,000
Fabrication
300,000
$ 260,000
23,000
Total
158880
Total
$ 560,000
$ 420,000
30,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Me
rav
Hill
2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours.
- Compute the plantwide predetermined overhead rate.
- Compute the total manufacturing cost assigned to Job D-70 and Job C-200
- If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?
- What is Delph's cost of goods sold for the year?
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