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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: Total Molding Fabrication 39,000 29,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour 68,000 290,000 $710,000 $ $1,000,000 $ 5.80 $ 5.80 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 Fabrication Total 372,000 326,000 $698,000 $ 250,000 $ 140,000 $ 390,000 6,000 29,000 23,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 260,000 300,000 $560,000 $ 170,000 270,000 $ 440,000 6,000 33,000 39,000 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.) Predetermined overhead rates Molding Department Fabrication Department per MH per MH 2-b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) Total manufacturing cost Job D-70 Job C-200 20. If Delph establishes bid prices that are 130% 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.) Bid price Job D-70 Job C-200 . What is Delph's cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) Cost of goods sold
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