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 $760,000 $ 4.00 Fabrication 33,000 $220,000 $ 2.00 Total 54,000 $980,000 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 Direct labor cost Direct materials cost Machine-hours Molding, $ 370,000 $ 240,000 16,000 Molding $260,000 $ 140,000 5,000 Fabrication $ 320,000 $ 160,000 5,000 Fabrication $ 260,000 $220,000 28,000 Total $690,000 $ 400,000 21,000 Total $520,000 $ 36,000 33,000 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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