Question

Required information The following information applies to the questions displayed below. Delph Company uses a job-or der costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: 72,000 $ 800,000 270,000 $1,070,000 31,000 41,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour , completed, and sold only two jobs- During the year, the company had no beginning or ending inventories and it started Job D-70 and Job C-200. It provided the following information related to those two jobs: Molding FabricationTotal Direct materials cost $376,000 Direct labor cost 326,000 702,000 230,000 170,000 400,000 8,000 31,000 Machine-hours 23,000 Job c-200 Direct materials cost $270,000 Direct labor cost Machine-hours Molding Fabrication Total 240,000 510,000 140,000 230,000 370,000 8,000 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 130% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?

Answer 1

2)
a)		Molding	Fabrication
	Estimated fixed manufacturing overhead	$    8,00,000	$     2,70,000
	Machine hours	31000	41000
	Pre-determined fixed MOH rate	$          25.81	$             6.59
	Variable MOH rate	$            5.20	$             5.20
	Pre-determined MOH rate	$          31.01	$           11.79
b)		Job D-70	Job C-200
	Direct material cost:
	Molding department	$    3,76,000	$     2,70,000
	Fabrication department	$    3,26,000	$     2,40,000
	Direct labor cost:
	Molding department	$    2,30,000	$     1,40,000
	Fabrication department	$    1,70,000	$     2,30,000
	Manufacturing overhead assigned:
	Molding department [23000*$31.01/8000*$31.01]	$    7,13,230	$     2,48,080
	Fabrication department [8000*$11.79/33000*$11.79]	$        94,320	$     3,89,070
	Total manufacturing costs assigned to Jobs	$ 19,09,550	$ 15,17,150
c)	Bid prices [Total manufacturing cost*130%]	$ 24,82,415	$ 19,72,295
d)	Cost of goods sold for the year = 1909550+1517150 =	$ 34,26,700