Question

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 39,000 Total Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour$ 29,000 $710,000 s 5.80 68,000 290,000 $1,000,000 $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: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 372,000 326,000 $698,000 $ 250,000 $ 140,000 $ 390,000 6,000 29,000 23,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 260,000 300,000 $560,000 $ 170,000 270,000 $ 440,000 6,000 33,000 39,000 Delph had no overapplied or underapplied manufacturing overhead during the year.

Answer 1

2a           Computation Of Predetermined Departmental Overhead Rate                                               Amount in $

	Moulding	Fabrication
Fixed Overheads (A) Machine Hours (B) Fixed Overheads Per Machine Hr (A/B=C) Variable Overheads Per Machine Hr (D)	710,000 29,000	290,000 39,000
	24.48 5.8	7.44 5.8
Predetermined Overhead Rate (F=C+D)	30.28	13.24

2b           Total Manufacturing Cost

Job D-70	Moulding	Fabrication	Total
Direct Material Cost Direct Labour Cost Machine Hours (G) Overhead Rate Per Machine Hr (F) Over Heads (F*G)	372,000 250,000 23,000 30.28 696,503.45	326,000 140,000 6,000 13.24 79,415.38	698,000 390,000 775,918.83
Total Manufacturing Cost (I)			1,863,918.83

Job C-200	Moulding	Fabrication	Total
Direct Material Cost Direct Labour Cost Machine Hours (H) Overhead Rate Per Machine Hr (F) Over Heads (F*H)	260,000 170,000 6,000 30.28 181,696.55	300,000 270,000 33,000 13.24 436,784.62	560,000 440,000 618,481.17
Total Manufacturing Cost (J)			1,618,481.17

2c            Bid Price If Quoted For 130% Of Manufacturing Cost       

	Job D-70	Job C-200
Manufacturing Cost @100% Bid Price @130%	1,863,918.83 2,423,094.48 (I*130/100)	1,618,481.17 2,104,025.52 (J*130/100)

2d           Cost Of Goods Sold For The Year

Cost Of Goods Sold For Job D-70 Cost Of Goods Sold For Job C-200	1,863,918.83 1,618,481.17
Total Cost Of Goods Sold For The Year	3,482,400