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, 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 | $ | 375,000 | $ | 326,000 | $ | 701,000 |
Direct labor cost | $ | 240,000 | $ | 150,000 | $ | 390,000 |
Machine-hours | 19,000 | 9,000 | 28,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 230,000 | $ | 260,000 | $ | 490,000 |
Direct labor cost | $ | 140,000 | $ | 260,000 | $ | 400,000 |
Machine-hours | 9,000 | 29,000 | 38,000 | |||
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]
A |
Variable Overhead rate |
$ 5.50 |
$ 5.50 |
||
B |
Total machine hours |
28,000 |
38,000 |
66,000 |
|
C = A x B |
Total Variable Overhead |
$ 154,000 |
$ 209,000 |
$ 363,000 |
|
D |
Total Fixed Overheads |
$ 760,000 |
$ 230,000 |
$ 990,000 |
|
E = C+D |
Total manufacturing Overhead |
$ 1,353,000 |
|||
F |
Total machine hours |
66,000 |
|||
G = E/F |
Plant Wide Overhead rate |
$ 20.50 |
Answer |
[b]
Job D 70 |
Job C 200 |
||
Molding Department: |
|||
Direct material cost |
$ 375,000 |
$ 230,000 |
|
Direct Labor cost |
$ 240,000 |
$ 140,000 |
|
Manufacturing Overhead |
$ 389,500 |
$ 184,500 |
|
Fabrication Department: |
|||
Direct material cost |
$ 326,000 |
$ 260,000 |
|
Direct Labor cost |
$ 150,000 |
$ 260,000 |
|
Manufacturing Overhead |
$ 184,500 |
$ 594,500 |
|
Total manufacturing cost assigned |
$ 1,665,000 |
$ 1,669,000 |
ANSWERS |
[c]
Job D 70 |
Job C 200 |
||
A |
Total manufacturing cost assigned |
$ 1,665,000 |
$ 1,669,000 |
B = A x 140% |
Bid Price |
$ 2,331,000 |
$ 2,336,600 |
[d]
Total manufacturing cost assigned |
|
Job D 70 |
$ 1,665,000 |
Job C 200 |
$ 1,669,000 |
Cost of Goods Sold |
$ 3,334,000 |
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 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 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 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 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 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: 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 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding 23,000 $ 710,000 5.50 Fabrication 33,eee $ 270, eee $ 5.50 Total 56, eee $980, eee During the year, the company had no beginning or ending inventories and it started, completed,...
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 27,000 $ 760,000 $ 5.40 Fabrication 37,000 $250,000 $ 5.40 Total 64,000 $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: 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,...