Question
Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication.
Required information
[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:
MoldingFabricationTotalMachine-hours29,00039,00068,000Fixed manufacturing overhead costs$760,000$270,000$1,030,000Variable manufacturing overhead cost per machine-hour$5.80$5.80
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:MoldingFabricationTotalDirect materials cost$378,000$321,000$699,000Direct labor cost$230,000$170,000$400,000Machine-hours23,0006,00029,000
Job C-200:MoldingFabricationTotalDirect materials cost$230,000$220,000$450,000Direct labor cost$140,000$270,000$410,000Machine-hours6,00033,00039,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
2. 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 costs, 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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