Question

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...

Delph 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 21,000 31,000 52,000 Fixed manufacturing overhead costs \$ 710,000 \$ 210,000 \$ 920,000 Variable manufacturing overhead cost per machine-hour \$ 5.70 \$ 5.70

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: Molding Fabrication Total Direct materials cost \$ 377,000 \$ 329,000 \$ 706,000 Direct labor cost \$ 240,000 \$ 160,000 \$ 400,000 Machine-hours 15,000 6,000 21,000

 Job C-200: Molding Fabrication Total Direct materials cost \$ 260,000 \$ 270,000 \$ 530,000 Direct labor cost \$ 130,000 \$ 290,000 \$ 420,000 Machine-hours 6,000 25,000 31,000

QUESTIONS:

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

 Pre determined overhead rates Molding Department per MH Fabrication Department per MH

2) Compute the total manufacturing cost assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.)

 Total manufacturing cost Job D-70 Job C-200

3. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.)

 Bid price Job D-70. Job C-200

4. What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places. Round your final answer to nearest whole dollar amount.)

 Cost of goods sold

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

 Pre determined overhead rates Molding Department 710000/21000+5.70 = 39.51 per MH Fabrication Department 210000/31000+5.70 = 12.47 per MH

2) Total manufacturing cost

 Job D-70 Job C-200 Direct material 706000 530000 Direct labor 400000 420000 Molding overhead 15000*39.51 = 592650 237060 Fabrication overhead 6000*12.47 = 74820 311750 Total manufacturing cost 1773470 1498810

3) Bid price

Job D-70 = 1773470*1.2 = 2128164

Job C-200 = 1498810*1.2 = 1798572

4) Cost of goods sold = 1773470+1498810 = \$3272280

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