Answered step by step
Verified Expert Solution
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 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: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding 22,000 $ 720,000 5.70 Fabrication Total 32,000 54,000 $ 260,000 $ 980,000 5.70 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 $ 379,000 $ 320,000 $ 699,000 $ 230,000 $ 140,000 $ 370,000 17,000 5,000 22,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 200,000 $200,000 $ 400,000 $ 110,000 $ 220,000 $ 330,000 5,000 27,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 3-15 (Algo) Part 1 Required: 1. Assume Delph uses 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 130% of total manufacturing cost, 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started