Question
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
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 | 20,000 | 30,000 | 50,000 |
Fixed manufacturing overhead cost | $ 720,000 | $ 280,000 | $ 1,000,000 |
Variable manufacturing overhead cost per machine-hour | $ 5.00 | $ 1.50 |
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 | $ 370,000 | $ 320,000 | $ 690,000 |
Direct labor cost | $ 240,000 | $ 180,000 | $ 420,000 |
Machine-hours | 13,000 | 7,000 | 20,000 |
Job C-200 | Molding | Fabrication | Total |
---|---|---|---|
Direct materials cost | $ 240,000 | $ 260,000 | $ 500,000 |
Direct labor cost | $ 120,000 | $ 300,000 | $ 420,000 |
Machine-hours | 7,000 | 23,000 | 30,000 |
Delph had no underapplied or overapplied manufacturing overhead during the year.
2. Assume Delph 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 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?
d. What is Delphs cost of goods sold for the year?
Required information [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 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 an Job C-200? What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given belowStep by Step Solution
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