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. Machine-hours Fixed manufacturing overhead coats Variable manufacturing overhead coat per machine-hour Molding 25.000 $ 740.000 $ 3.80 Tabrication 35.000 200.000 5.80 Total 60,000 $1,020,000 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-701 Direct materials cost Direct labor cost Machine-hours Holding Fabrication Total $ 374,000 $ 329.000 $ 703.000 $ 210.000 $ 170.000 $ 380,000 8,000 25,000 Job C-2001 Direct materials cost Direct labor cost Machinehour Molding Fabrication total $ 220,000 $280,000 $500,000 $ 110,000 $ 270,000 $380,000 3.000 27.000 35.000 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. c. If Delph establishes bid prices that are 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-2007 d. What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 2A Required 28 Required 2C Required 2D Compute the departmental predetermined overhead rates. (Round the final answers to 2 decimal places.) Pre determined overhead rates per MH Molding Department Fabrication Department

Answer 1

2A) Fixed manufacturing overhead costs Total Machine-hours Fixed overhead rate per MH Add: Variable overhead rate per MH Predetermined overhead rate per MH Molding $740,000 25,000 $29.60 $5.80 $35.40 Fabrication $280,000 35,000 $8.00 [$740000 / 25000 MHs; $280000 / 35000 MHs] $5.80 [Given] $13.80 2B) Direct materials - Molding Direct materials - Fabrication Direct labors - Molding Direct labors - Fabrication Manufacturing overhead cost - Molding Manufacturing overhead cost - Fabrication Total manufacturing costs assigned D-70 $374,000 $329,000 $210,000 $170,000 $601,800 $110,400 $1,795,200 C-200 $220,000 $280,000 $110,000 $270,000 $283,200 [17000 MHs x $35.40; 8000 MHS x $35.40] $372,600 [8000 MHs x $13.80; 27000 MHs x $13.80] $1,535,800 2C) Total manufacturing costs assigned Bid price% Bid price, dollars D-70 $1,795,200 140% $2,513,280 C-200 $1,535,800 (Ref: Part-2B] 140% $2,150,120 ($1795200 x 140%; $1535800 x 140%] 2D) Total manufacturing costs assigned - D-70 $1,795,200 [Ref: Part-2B] Total manufacturing costs assigned - C-200 $1,535,800 (Ref: Part-2B] Cost of goods sold for the year $3,331,000 (Because there is no beginning or ending WIP]