Question
[The following information applies to the questions displayed below.] Espinoza-Hunter Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company
[The following information applies to the questions displayed below.]
Espinoza-Hunter 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 | 23,000 | 34,000 | 57,000 | ||||
Fixed manufacturing overhead costs | $ | 740,000 | $ | 240,000 | $ | 980,000 | |
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 | $ | 160,000 | $ | 380,000 |
Machine-hours | 15,000 | 8,000 | 23,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 260,000 | $ | 240,000 | $ | 500,000 |
Direct labor cost | $ | 160,000 | $ | 300,000 | $ | 460,000 |
Machine-hours | 8,000 | 26,000 | 34,000 | |||
Espinoza-Hunter had no underapplied or overapplied manufacturing overhead during the year.
rev: 07_28_2020_QC_CS-217627, 09_05_2020_QC_CS-224324
Required:
1. Assume Espinoza-Hunter uses 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 Espinoza-Hunterestablishes 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 Espinoza-Hunter's cost of goods sold for the year?
ANSWER FOLLOWING:
Required 1A Predetermined overhead rate ______ per MH
Total Manufactoring Cost
Required 1 B Job D-70________
Job C-200________
Bird Price
Required 1C Job D-70__________
Job C-200_________
Required 1 D Cost of Goods Sold_____
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