Smithson 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 35,000 60,000 Fixed manufacturing overhead costs $ 720,000 $ 230,000 $ 950,000 Variable manufacturing overhead per machine hour $ 5 00 $ 5 00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D 75 and Job C 100 It provided the following information related to those two jobs Job D 75 Molding Fabrication Total Direct materials cost $ 372,000 $ 329,000 $ 701,000 Direct labor cost $ 230,000 $ 150,000 $ 380,000 Machine hours 18,000 7,000 25,000 Job C 100 Molding Fabrication Total Direct materials cost $ 210,000 $ 250,000 $ 460,000 Direct labor cost $ 150,000 $ 280,000 $ 430,000 Machine hours 7,000 28,000 35,000 Smithson had no overapplied or underapplied manufacturing overhead during the year ebook resources 2 Assume Smithson uses departmental overhead rates based on machine hours 2 a Compute the predetermined departmental overhead rates (Round your answers to 2 decimal places ) Predetermined Overhead Rates Molding Department $ Fabrication Department $ 2 b Compute the total manufacturing costs assigned to Job D 75 and Job C 100 (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount ) Total Manufacturing Cost Job D 75 $ Job C 100 $ 2 c If Smithson establishes bid prices that are 120 of total manufacturing costs, what bid price would it have established for Job D 75 and Job C 100 (Round your intermediate calculations to 2 decimal places, Total manufacturing cost and final answers to the nearest dollar amount ) Bid price Job D 75 $ Job C 100 $ 2 d What is Smithsons cost of goods sold for the year (Round your intermediate calculations to 2 decimal places, Total manufacturing cost and final answers to the nearest dollar amount ) Cost of goods sold $

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Smithson 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

Smithson 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		35,000	60,000
Fixed manufacturing overhead costs	$	720,000	$	230,000	$ 950,000
Variable manufacturing overhead per machine-hour	$	5.00	$	5.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-75 and Job C-100. It provided the following information related to those two jobs:

Job D-75:	Molding		Fabrication		Total
Direct materials cost	$	372,000	$	329,000	$	701,000
Direct labor cost	$	230,000	$	150,000	$	380,000
Machine-hours		18,000		7,000		25,000

Job C-100:	Molding		Fabrication		Total
Direct materials cost	$	210,000	$	250,000	$	460,000
Direct labor cost	$	150,000	$	280,000	$	430,000
Machine-hours		7,000		28,000		35,000

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

ebook & resources

Assume Smithson uses departmental overhead rates based on machine-hours.

2-a.

Compute the predetermined departmental overhead rates. (Round your answers to 2 decimal places.)

	Predetermined Overhead Rates
Molding Department	$
Fabrication Department	$

2-b.

Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

	Total Manufacturing Cost
Job D-75	$
Job C-100	$

2-c.

If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.)

	Bid price
Job D-75	$
Job C-100	$

2-d.

What is Smithsons cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.)

Cost of goods sold