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 28,000 38,000 66,000 Fixed manufacturing overhead costs $ 700,000 $ 300,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10 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 $ 375,000 $ 330,000 $ 705,000 Direct labor cost $ 250,000 $ 140,000 $ 390,000 Machine-hours 22,000 6,000 28,000 Job C-200: Molding Fabrication Total Direct materials cost $ 270,000 $ 230,000 $ 500,000 Direct labor cost $ 110,000 $ 260,000 $ 370,000 Machine-hours 6,000 32,000 38,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. 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 140% 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? 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 28,000 38,000 66,000 Fixed manufacturing overhead costs $ 700,000 $ 300,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10 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 $ 375,000 $ 330,000 $ 705,000 Direct labor cost $ 250,000 $ 140,000 $ 390,000 Machine-hours 22,000 6,000 28,000 Job C-200: Molding Fabrication Total Direct materials cost $ 270,000 $ 230,000 $ 500,000 Direct labor cost $ 110,000 $ 260,000 $ 370,000 Machine-hours 6,000 32,000 38,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. 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 140% 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?
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