Question

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 29, eee 5 710,eee $ 6.ee Fabrication 3 9, eee $240, eee $ 6.ee Total 68, eee $95e, eee 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 Total 5377,000 5 323,eee 57ee.ee $ 210,eee $ 180,cee $390,000 21, Bee 8.000 29. Bee Job C-200; Direct materials cost Direct labor cost Machine-hours Molding Fabrication total 5258.Bee $230, vee 548, Bee $ 170.ee $ 220,00 $ 390,00 8.000 31.8 39. Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200 Cif Delph establishes bld prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-2002 d. What is Delph's cost of goods sold for the year?

Answer 1

2a
	Predetermined overhead rate
Molding Department	30.48	=6+(710000/29000)
Fabrication Department	12.15	=6+(240000/39000)
b
	Job D-70	Job C-200
Direct materials cost	700000	480000
Direct labor cost	390000	390000
Overhead:
Molding Department	640080	243840
Fabrication Department	97200	376650
Total manufacturing cost	1827280	1490490
c
	Job D-70	Job C-200
Total manufacturing cost	1827280	1490490
Add: Markup @50%	913640	745245
Bid prices	2740920	2235735
d
Total manufacturing cost Job D-70	1827280
Total manufacturing cost Job C-200	1490490
Cost of goods sold	3317770
Workings:
	Job D-70	Job C-200
Overhead:
Molding Department	=21000*30.48	=8000*30.48
Fabrication Department	=8000*12.15	=31000*12.15