Required information

Skip to question

[The following information applies to the questions displayed below.]

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	25,000	32,000	57,000
Fixed manufacturing overhead cost	$ 760,000	$ 260,000	$ 1,020,000
Variable manufacturing overhead cost per machine-hour	$ 5.00	$ 2.00

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	$ 370,000	$ 320,000	$ 690,000
Direct labor cost	$ 240,000	$ 160,000	$ 400,000
Machine-hours	16,000	9,000	25,000

Job C-200	Molding	Fabrication	Total
Direct materials cost	$ 280,000	$ 300,000	$ 580,000
Direct labor cost	$ 140,000	$ 260,000	$ 400,000
Machine-hours	9,000	23,000	32,000

Delph had no underapplied or overapplied manufacturing overhead during the year.

Required: 1. 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 150% 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?