Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Z Seved Help Save & E neyMCU HUIFFOLUI! [The following information applies to the questions displayed below.) Upton and Verlander Company uses a job-order costing
Z Seved Help Save & E neyMCU HUIFFOLUI! [The following information applies to the questions displayed below.) Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments-Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Pabrication 28,000 38,000 $ 780,000 $ 230,000 $ 5.20 $ 5.20 Total 66,000 $1,010,000 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 D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 371,000 $325,000 $ 696,000 $ 210,000 $ 160,000 $ 370,000 21,000 7,000 28,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 240,000 $ 200,000 $ 440,000 $ 150,000 $ 280,000 $430,000 7,000 31,000 38,000 Upton and Verlander had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Upton and Verlander 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 Upton and Verlander establishes bid prices that are 140% of total manufacturing cost, what bld prices would it have established for Job D-70 and Job C-200? d. What is Upton and Verlander's cost of goods sold for the year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started