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 | 29,000 | 39,000 | 68,000 | ||||
Fixed manufacturing overhead costs | $ | 730,000 | $ | 270,000 | $ | 1,000,000 | |
Variable manufacturing overhead cost per machine-hour | $ | 6.10 | $ | 6.10 | |||
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 | $ | 373,000 | $ | 323,000 | $ | 696,000 |
Direct labor cost | $ | 230,000 | $ | 160,000 | $ | 390,000 |
Machine-hours | 19,000 | 10,000 | 29,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 230,000 | $ | 300,000 | $ | 530,000 |
Direct labor cost | $ | 120,000 | $ | 270,000 | $ | 390,000 |
Machine-hours | 10,000 | 29,000 | 39,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
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 120% of total manufacturing cost, 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?
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