Question
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
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 | 21,000 | 32,000 | 53,000 |
Fixed manufacturing overhead cost | $ 800,000 | $ 260,000 | $ 1,060,000 |
Variable manufacturing overhead cost per machine-hour | $ 3.00 | $ 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 | $ 220,000 | $ 180,000 | $ 400,000 |
Machine-hours | 16,000 | 5,000 | 21,000 |
Job C-200 | Molding | Fabrication | Total |
---|---|---|---|
Direct materials cost | $ 280,000 | $ 260,000 | $ 540,000 |
Direct labor cost | $ 120,000 | $ 280,000 | $ 400,000 |
Machine-hours | 5,000 | 27,000 | 32,000 |
Delph had no underapplied or overapplied manufacturing overhead during the year.
rev: 07_21_2020_QC_CS-217627, 09_03_2020_QC_CS-225692
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?
Complete the question by entering your answers in the tabs given below. Required 1A Required 1B Required 10 Required 1D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental predetermined overhead rates. (Round the final answers to 2 decimal places.) Predetermined overhead rates Molding Department Fabrication Department per MH per MH Complete the question by entering your answers in the tabs given below. Required 1A Required 1B Required 1C Required 1D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.) Total manufacturing cost Job D-70 Job C-200 Complete the question by entering your answers in the tabs given below. Required 1A Required 1B Required 1C Required 1D Assume Delph uses departmental predetermined overhead rates based on machine-hours. 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? (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.) Bid price Job D-70 Job C-200 Complete the question by entering your answers in the tabs given below. Required 1A Required 1B Required 10 Required 10 Assume Delph uses departmental predetermined overhead rates based on machine-hours. What is Delph's cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places. Round your final answer to nearest whole dollar amount.) Cost of goods sold
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