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 costs $ 780,000 $ 290,000 $ 1,070,000 Variable manufacturing overhead per machine-hour $ 5.80 $ 5.80
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 $ 377,000 $ 327,000 $ 704,000 Direct labor cost $ 210,000 $ 140,000 $ 350,000 Machine-hours 15,000 5,000 20,000
Job C-200: Molding Fabrication Total Direct materials cost $ 240,000 $ 240,000 $ 480,000 Direct labor cost $ 110,000 $ 300,000 $ 410,000 Machine-hours 5,000 25,000 30,000
Delph had no overapplied or underapplied manufacturing overhead during the year.
5. Required information Assume Delph uses departmental overhead rates based on machine-hours.
2-a. Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.)
2-b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)
2-c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)
2-d. What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)
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 costs | $ | 780,000 | $ | 290,000 | $ 1,070,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.80 | $ | 5.80 | ||
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 | $ | 377,000 | $ | 327,000 | $ | 704,000 |
| Direct labor cost | $ | 210,000 | $ | 140,000 | $ | 350,000 |
| Machine-hours | 15,000 | 5,000 | 20,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 240,000 | $ | 240,000 | $ | 480,000 |
| Direct labor cost | $ | 110,000 | $ | 300,000 | $ | 410,000 |
| Machine-hours | 5,000 | 25,000 | 30,000 | |||
Delph had no overapplied or underapplied manufacturing overhead during the year.
| |
| Assume Delph uses departmental overhead rates based on machine-hours. |
| 2-a. | Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.) |
| 2-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 2-c. | If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.) |
| 2-d. | What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0078025617
