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 | 20,000 | 30,000 | 50,000 |
Fixed manufacturing overhead cost | $ 700,000 | $ 210,000 | $ 910,000 |
Variable manufacturing overhead cost per machine-hour | $ 3.00 | $ 1.00 |
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 | $ 375,000 | $ 325,000 | $ 700,000 |
Direct labor cost | $ 200,000 | $ 160,000 | $ 360,000 |
Machine-hours | 14,000 | 6,000 | 20,000 |
Job C-200: | Molding | Fabrication | Total |
---|---|---|---|
Direct materials cost | $ 300,000 | $ 250,000 | $ 550,000 |
Direct labor cost | $ 175,000 | $ 225,000 | $ 400,000 |
Machine-hours | 6,000 | 24,000 | 30,000 |
Delph had no underapplied or overapplied manufacturing overhead during the year.
2. Assume Delph chooses to combine its departmental rates into 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 150% 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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