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Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and
Required information [The following information applies to the questions displayed below.] 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 cost Variable manufacturing overhead cost per machine-hour 34,000 $220,000 Molding 21,000 $760,000 Fabrication $ 3.00 $ 1.00 Total 55,000 $980,000 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 0-70 Direct materials cost Molding $370,000 Direct labor cost Machine-hours $220,000 14,000 Fabrication $ 320,000 $140,000 Total $690,000 $360,000 7,000 21,000 Job C-200 Holding Fabrication Direct materials cost $ 300,000 Direct labor cost Machine-hours $140,000 7,000 $220,000 $220,000 Total $520,000 $360,000 27,000 34,000 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 Delph's cost of goods sold for the year?
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