Question

Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 29,000 39,000 $ 730,000 $240,000 $ 5.50 5.50 Total 68,000 $970,000 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-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 380,000 $321,000 $ 701,000 $ 250,000 $ 180,000 $430,000 21,000 8.000 29,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication total $ 250,000 $300,000 $ 550,000 $ 130,000 $ 220,000 $350,000 8,000 31,000 39,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 12. Assume Delph uses departmental predetermined overhead rates based on machine-hours. 1. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. 1. If Delph establishes bid prices that are 130% 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?

Answer 1

Answer: 20) calculation & the Departmental predetermined overhead routes pre determined Overhead role = ffiaed overhead costs/Machine hours]* variable querhead cost Molding Departament = ($ 730,000/29.000)+ $5.50. : Holding Department = $ 30.61 per hour Fabrication Department - $ 240,000/39,000 )+$5.50 :: Fabrication Department = $11.65 per hour. 2b) Caloulation of the total Manufacturing cost. Job-D-70 Job C-200 Direct Material $ 101,000 $ 550,000 $350,000 Direct labor $430,000 Overheap applied $245,360 Molding $ 644,070 (21,000x $30.67] [sooo x $30.67] Fabrication 1$ 93200 $361150 (8000x $11.651 ] 31000x$11.653 Total $1,868,270 $1506510 :: Total mQucfacturing cast in Job D-70 is $1,868270 and Jobc. 200 is $ 1,506, 510. 20) Calculation of Bid price: Bid price in Job D-70 = $1,868 270 x 130% = $2,428,75) Bid price in Job C-200= $1,506,510 x 130% = $1,958,463. 2d) calculation of cost of goods gold Cost of goods sold : 306 070's cost + Job C-2005 cost = $1,868,270 + $ 1,506,510 cost of goods sold: $3,374,780