Question

Don 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. Total 28,000 38, ce 66,000 $720,800 $ 220, eee $948, eee $ 5.99 $ 5.90 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-78: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Totalli $375,000 5 326.000 $701, eee $2ee, eee $ 160,000 $360,000 20,000 8,000 28,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 300,000 $ 220,000 $520,000 Slee,eee $ 240, see $340,000 8, see 30, ece 38,eee 193939 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

	Particulars	Molding	Fabrication	Total
	Machine hours	28000	38000	66000
	Fixed manufacturing overhead costs	$720,000	$220,000	$940,000
	Fixed manufacturing overhead per machine hour	$25.71	$5.79
	Variable Manufacturing overhead cost per machine hour	$5.90	$5.90
a)	Predetermined overhead rates	$31.61	$11.69
b)	Job D-70	Molding	Fabrication	Total
	Direct material cost	$375,000	$326,000	$701,000
	Direct labour cost	$200,000	$160,000	$360,000
	Machine hours	20000	8000	28000
	Manufacturing Overhead Costs	$632,200	$93,520	$725,720
	Job C-200	Molding	Fabrication	Total
	Direct material cost	$300,000	$220,000	$520,000
	Direct labour cost	$100,000	$240,000	$340,000
	Machine hours	8000	30000	38000
	Manufacturing Overhead Costs	$205,680	$173,700	$379,380
c)	Bid price assigned	Job D-70	Job C-200
	Manufacturing overhead	$725,720	$379,380
	Bid price(130%)	$943,436	$493,194
d)	Cost of goods sold(from b)	$1,207,200	$579,520