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Smithson 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:

Molding Fabrication Total

Machine-hours 32,000 42,000 74,000

Manufacturing overhead costs $ 950,000 $ 410,000 $ 1,360,000

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job 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 $ 378,000 $ 326,000 $ 704,000

Direct labor cost $ 210,000 $ 140,000 $ 350,000

Machine-hours 23,000 9,000 32,000

Job C-100: Molding Fabrication Total

Direct materials cost $ 240,000 $ 200,000 $ 440,000

Direct labor cost $ 140,000 $ 280,000 $ 420,000

Machine-hours 9,000 33,000 42,000

Smithson had no overapplied or underapplied manufacturing overhead during the year. Assume Smithson uses a plantwide overhead rate based on machine-hours.

Required:

1-a. Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

Predetermined Overhead Rate: $18.38

1-b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.)

Total Manufacturing costs

Job D-75: $

Job C-100: $

1-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.)

Bid Price

Job D-75: $

Job C-100: $

1-d. What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

Cost of goods sold: $

Answer 1