Question

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		23,000		33,000	56,000
Fixed manufacturing overhead costs	$	700,000	$	220,000	$ 920,000
Variable manufacturing overhead 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	$	374,000	$	328,000	$	702,000
Direct labor cost	$	210,000	$	160,000	$	370,000
Machine-hours		15,000		8,000		23,000

  

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	290,000	$	220,000	$	510,000
Direct labor cost	$	120,000	$	240,000	$	360,000
Machine-hours		8,000		25,000		33,000

Assume Delph uses a plantwide overhead rate based on machine-hours.

  

Required:

1-a.	Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

          

1-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

          

1-c.	If Delph establishes bid prices that are 140% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

          

1-d.	What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

       

Answer 1

AB Moldin 23,000 Fabrication Total Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour $ 33,000 56,000 $700,000 $ 220,000 $920,000 5.50 5.50 predetermined plantwide overhead rate total manufacturing overhead/total machine hours total manufacturing overhead fixed manufacturing overhead+ variable manufacturing overhead total manufacturing overhead total machine hours- $ 1,228,000 56,000 10 1-a lpredetermined plantwide overhead rate- 21.93 12 13 14 15 16 17 18 1-b total manufacturing costs assigned to Job D-70 and Job C-200 Job D-70 Job C-200 Direct materials cost Direct labor cost total manufacturing overhead total manufacturing costs $702,000 $ 510,000 S 370,000 S 360,000 $ 504,357$723,643 S 1,576,357 1,593,643 1-c bid price (140% of total manufacturing costs 6,900 $ 2,231,100 20 21 since only D-70 and Job C-200 were manufactured and sold during the current year and there were 1-d no opening and closing wip, cost of goods sold for the year would be the sum of total manufacturing costs assigned to Job D-70 and Job C-200 elph's cost of goods sold for the year $ 3,170,000 23 25

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