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
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 $ 700,000 $ 4.00 Fabrication 30,000 $ 200,000 $ 1.00 Total 51,000 $ 900,000 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 Job C-200 Molding $ 370,000 Fabrication $ 320,000 $ 160,000 $ 220,000 13,000 Molding 8,000 Fabrication Total $ 690,000 $ 380,000 21,000 Total Direct materials cost $ 220,000 $ 200,000 $ 420,000 Direct labor cost Machine-hours $ 100,000 8,000 $ 240,000 22,000 $ 340,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 1 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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