Question

2 and 3) 1 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 Total 27,000 37,000 64,000 $780,000 $ 280,000 $1,060,000 5.70 $ 5.70 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 twojobs Job D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $377,000 $ 320,000 $697,000 $230,000 $ 130,000 $360,000 19,000 8,000 27,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication total $220.000 $ 220,000 $440, eee $170,000 $ 260,000 $430,000 8,000 29,000 37,000

Answer 1

1a) Departmental overhead rate :

Molding department = 780000/27000+5.70 = 34.59 per MH

Fabrication department = 280000/37000+5.70 = 13.27 per MH

1b) Total manufacturing cost

	Job D-70	Job C-200
Direct material	697000	440000
Direct labor	360000	430000
Molding overhead	19000*34.59 = 657210	276720
Fabrication overhead	8000*13.27 = 106160	384830
Total manufacturing cost	1820370	1531550

1c) Bid price

Job D-70 = 1820370*1.5 = 2730555

Job C-200 = 1531550*1.5 = 2297325

1d) Cost of goods sold = 1820370+1531550 = 3351920