Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image

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 Fabrication 22,000 $ 720,000 $ 4.00 30,000 $ 300,000 $ 1.50 Total 52,000 $ 1,020,000 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 Molding $ 370,000 $ 240,000 14,000 Fabrication $ 320,000 $ 140,000 8,000 Molding Fabrication Job C-200 Direct materials cost Direct labor cost Machine-hours $ 280,000 $ 160,000 8,000 $ 240,000 $ 240,000 22,000 Total $ 690,000 $ 380,000 22,000 Total $520,000 $ 400,000 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 Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 2A Required 2B Required 2C Required 2D

Step by Step Solution

3.38 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

Delph Company JobOrder Costing Required 2A Plantwide Predetermined Overhead Rate Calculate the Total ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

15th edition

1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940

More Books

Students also viewed these Accounting questions

Question

141. List the seven steps in the decision-making process.

Answered: 1 week ago