Question

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 31,890 $760,800 $ 5.50 Fabrication 41,800 $ 250,880 $ 5.50 Total 72,890 $1,812, e88 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-78: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 379,880 $ 326,880 $ 696,880 $ 240,00 $ 140,00 $ 388,888 24,800 7,800 31,800 Job C-208: Direct materials cost Direct labor cost Machine-hours Molding Fabrication $ 250,eee $ 280,00 $ 179,999 $ 268,890 7,880 34,880 Total $ 539,800 $430,800 41,880 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

Solution  a:

Plantwide predetermined overhead rate = Estimated overhead / Estimated machine hours = [(31000*$5.50) + (41000*$5.50) + $1,010,000] / 72000

= $19.53 per machine hour

Solution b:

Compuatation of manufacturing cost assigned to Job - Delph
Particulars	Job D70	Job C200
Direct Material	$696,000.00	$530,000.00
Direct Labor	$380,000.00	$430,000.00
Manufacturing overhead D 70 - 31000*$19.53 C200 - 41000*$19.53	$605,430.00	$800,730.00
Total Manufacturing cost	$1,681,430.00	$1,760,730.00

Solution c:

Computation of Bid Price
Particulars	Job D70	Job C200
Manufacturing Cost	$1,681,430.00	$1,760,730.00
Markup (30%)	$504,429.00	$528,219.00
Bid Price of Job	$2,185,859.00	$2,288,949.00

Solution d:

Cost of goods sold for the year = $1,681,430 + $1,760,730 = $3,442,160