Question

10 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 FabricationTotal 28,000 38, ce 66,000 $720,800 $ 220, eee $948, eee $ 5.99 $ 5.90 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-72: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Totall $375,000 5 326.000 $701, eee $ 209, eee $ 160,000 $360,000 20. eee , cea 28,000 Job C-200: Direct materials cost Direct labor cost Machine-hours EL 193139 Molding Fabrication Tot $ 300,000 $ 220,000 $520,000 Slee, eee $ 240, see $340,000 8,688 30.00 38. eee Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

solution: a) Departmental predetermined overhead Estimted MHS X VOH cost per MH Total VOH cost FOH cost Total Estimated MOH / Estimted MHS Pre determined overhead rates Molding Fabrication 28000 38000 5.91 5.9 165200224200 720000 220000 885200 444200 28000 38000 31.61 11.69 Job D-70 Job c-200 701000 520000 360000 340000 b. Cost assignment Direct material direct labor overhead applied (31.61* 20000+11.69*8000) (31.61*8000+11.69*30000) total manufacturing costs assigned 725802 603598 1463598 1786802 c. total manufacturing costs assigned x 130% Bid price Job D-70 Job c-200 1786802 1463598 130% 130% 2322842 1902678 d. Job D-70 Job c-200 Total cost of goods sold for the year 1786802 1463598 3250400