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. Machine hours Molding 29,000 $750,000 $ 5.60 Fabrication Total 39,000 68,000 $ 300.000 $1,050,000 $ 5.60 Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour During the year, the company had no beginning or ending Inventories and it started, completed, and sold only twojobs-Job D-70 and Job C-200. It provided the following information related to those twojobs Job D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 375,000 $329,000 $ 704,000 $ 210,000 $ 140,000 $350,000 24,000 5.000 29,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 270,000 $260.000 $530,000 $ 110,000 $260.000 $ 370,000 5.000 34.000 39.000 Delph had no overapplied or underapplied manufacturing overhead during the year. 2-b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) Total manufacturing cost Job D-70 Job C-200 2-c. If Delph establishes bid prices that are 150% 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.) Bid price Job D-70 Job C-200 2-d. What is Delph's cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) Cost of goods sold

Answer 1

	Molding	Fabrication
Fixed manufacturing overhead cost	750,000	300,000
Machine hours	29,000	39,000
Fixed manufacturing rate per hour	25.86206897	7.692307692
Variable manufacturing overhead rate	5.6	5.6
Pre determined overhead rate	31.46	13.29
Cost Assigned
	D-70	C-200
Direct Material cost	704,000	530,000
Direct Labor Cost	350,000	370,000
Overheads:
Molding	755,040	157,300
Fabrication	66,450	451,860
Total cost assigned	1,875,490	1,509,160
Bid Price
	D-70	C-200
Total cost	1,875,490	1,509,160
Bid Price	2,813,235.00	2,263,740.00
Cost of Goods sold = Cost of jobs	3,384,650