Question

[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: Total Fabrication Molding 26,000 Machine-hours 36,000 62,000 230,000 $ 700,000 $ 930,000 Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour 6.00 6.00 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: Fabrication Total Molding $ 373,000 $ 326,000 $ 699,000 $ 210,000 $ 180,000 $ 390,000 20,000 Direct materials cost Direct labor cost Machine-hours 6,000 26,000 Job C-200: Molding $ 220,000 $ 250,000 $ 470,000 $ 150,000 $ 280,000 $ 430,000 6,000 Fabrication Total Direct materials cost Direct labor cost Machine-hours 30,000 36,000 Delph had no overapplied or underapplied manufacturing overhead during the year.

Answer 1

1) a) predetermined overhead rate
	= (Total Fixed Overheads/ Total Machine Hours) + Variable Overhead Per MH
	=[($930000)/(62000)]+$6
	=$21 per machine hour
1b)	Total Manufactoring cost assigned to D-70 & C-200
		D-70	C-200
a	Direct Materials	$                6,99,000	$            4,70,000
b	Labor Cost	$                3,90,000	$            4,30,000
c	Machine Hours	26000	36000
d	Overhead Cost ($21*c)	546000	756000
e	Total Manufactoring cost	$              16,35,000	$         16,56,000
	(a+b+d)
1-c)	Bid Price
		D-70	C-200
a	Total Manufactoring cost	$              16,35,000	$         16,56,000
b	Bid Price (a*130%)	$              21,25,500	$         21,52,800
1-d)	Cost Of Goods Sold
	Direct Materials	=699000+470000	$         11,69,000
	Labor Cost	=390000+430000	$            8,20,000
	Overhead Cost	=930000+372000	$         13,02,000
	Cost of goods sold		$         32,91,000