Required information
[The following information applies to the questions
displayed below.]
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 | 31,000 | 41,000 | 72,000 | ||||
Fixed manufacturing overhead costs | $ | 710,000 | $ | 240,000 | $ | 950,000 | |
Variable manufacturing overhead cost per machine-hour | $ | 5.80 | $ | 5.80 | |||
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 | $ | 374,000 | $ | 321,000 | $ | 695,000 |
Direct labor cost | $ | 210,000 | $ | 130,000 | $ | 340,000 |
Machine-hours | 21,000 | 10,000 | 31,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 280,000 | $ | 260,000 | $ | 540,000 |
Direct labor cost | $ | 180,000 | $ | 280,000 | $ | 460,000 |
Machine-hours | 10,000 | 31,000 | 41,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
1. Assume Delph 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 Delph establishes bid prices that are 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
d. What is Delph’s cost of goods sold for the year?
Answers
A |
Total Fixed Overheads |
$ 950,000 |
B |
Total machine hours |
72,000 |
C = A/B |
Fixed overhead rate |
$ 13.19 |
D |
Variable Overhead rate |
$ 5.80 |
E = C+D |
Plantwide overhead rate |
$ 18.99 per machine hours |
Job D 70 |
Job C 200 |
|
Molding Department: |
||
Direct material cost |
$ 374,000 |
$ 280,000 |
Direct Labor cost |
$ 210,000 |
$ 180,000 |
Manufacturing Overhead |
$ 398,790 [21000 x $18.99] |
$ 189,900 [10000 x $18.99] |
Fabrication Department: |
||
Direct material cost |
$ 321,000 |
$ 260,000 |
Direct Labor cost |
$ 130,000 |
$ 280,000 |
Manufacturing Overhead |
$ 189,900 [10000 x 18.99] |
$ 588,690 [31000 x $18.99] |
Total manufacturing cost assigned |
$ 1,623,690 |
$ 1,778,590 |
Job D 70 |
Job C 200 |
||
A |
Total manufacturing cost assigned |
$ 1,623,690 |
$ 1,778,590 |
B = A x 140% |
Bid Price |
$ 2,273,166 |
$ 2,490,026 |
--Since there were no beginning or ending work in process, cost of goods sold would be sum of cost of the two jobs completed and sold.
--Cost of Goods Sold = 1623690 + 1778590 = $ 3,402,280
Answer = $ 3,402,280
Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order...
Required information [The following information applies to the questions displayed below.] 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 31,000 41,000 72,000 Fixed manufacturing overhead costs $ 710,000 $ 240,000 $ 950,000 Variable manufacturing overhead cost per machine-hour $ 5.80 $ 5.80 During the year, the company had no beginning or ending inventories and it started,...
Required information [The following information applies to the questions displayed below.] 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 29,000 39,000 68,000 Fixed manufacturing overhead costs $ 730,000 $ 260,000 $ 990,000 Variable manufacturing overhead cost per machine-hour $ 5.30 $ 5.30 During the year, the company had no beginning or ending inventories and it started,...
Required information [The following information applies to the questions displayed below.] 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 35,000 56,000 Fixed manufacturing overhead costs $ 800,000 $ 220,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.00 During the year, the company had no beginning or ending inventories and it started,...
Required information (The following information applies to the questions displayed below.) 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: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 25,000 35,000 $ 710,000 $ 290,000 $ 5.80 $ 5.80 Total 60,000 $1,000,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold...
Required information [The following information applies to the questions displayed below.] 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 28,000 38,000 66,000 Fixed manufacturing overhead costs $ 760,000 $ 230,000 $ 990,000 Variable manufacturing overhead cost per machine-hour $ 5.50 $ 5.50 During the year, the company had no beginning or ending inventories and it started,...
Required information [The following information applies to the questions displayed below.] 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: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 28,000 38,000 $ 790,000 $ 270,000 $ 6.00 $ 6.00 Total 66,000 $1,060,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold...
Required information [The following information applies to the questions displayed below.) 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: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding 25,000 $ 730,000 $ 6.00 Fabrication 35,000 $280,000 $ 6.00 Total 60,000 $1,010,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only...
Required information The following information applies to the questions displayed below.] 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! Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 28,000 38,000 $ 710,000 $ 210,000 $ 5.70 $ 5.70 Total 66,000 $920,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold...
Required information [The following Information applies to the questions displayed below.) 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 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Total 60.000 $1,000,000 $ 790,000 $ 5.50 $290,000 $ 5.50 During the year, the company had no beginning or ending Inventories and it started, completed, and sold only two Jobs-...
Required information (The following information applies to the questions displayed below.] 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: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 25,000 35,000 $ 710,000 $ 290,000 $ 5.80 $ 5.80 Total 60,000 $1,000,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold...