Question

Help Save & Exit Submit 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 Part 1 of 2 Holding Fabrication Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 710,000 6.10 $ $ 230,000 6.10 Skipped eBook 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: Print Job D-70: Direct materials cost Direct labor cost lachine-hours Holding $ 371.000 $ 210,000 23, 000 Fabrication 326,000 $ 160,000 9,000 Total $ 697.000 $ 370,000 32.000 Job C-200: Direct materiale cost Direct labor cost Machine-hours Holding $ 250,000 $ 110,000 9.000 Fabrication $ 280,000 $ 300,000 33,000 Total $530,000 $ 410,000 42.000 Delph had no underapplied or overapplied manufacturing overhead during the year Required: 23 < Prey of 10 !!! Next >

Answer 1

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Solotion : 1 a The estimated total manofacturing overhead cost is computed as follows : Y - $ 940000 + $ 6.10 per MH ) (74000 MH's) Estimated Estimated $940000 $451400 fixed maty overhead variable mofa overhead [ $6.10 perah x 74000 MH'S) Total with overhead cost Estimated $1391400 computed as follows: * The predetermined overhead rate is Estimated total mfg overhead & Estimated total machine hours = predetermined overhead rate $ 1391400 74000 MH'S $ 18.80 per MH b) Total manufacturing cost assigned to jobs D-70 g c-200 : Direct Materials Direct labor Manufacturing overhead applied [ 18 %0 per mH x 32000 rits] Eu 18.80 per HHX 42000 MH' Dato $697000 $ 370000 & 601600 C-200 $530000 410000 9789600 Total manofactoring cost $1729 600 $ 1668600 →

c) (-200 10-to Bid prices for Jobs D-to y c-200 particulars Toral manufacturing cost X Markup percentage (14000) & Bod price 1668600 $1729600 1401 140*4 $2421440 $2336040 ② d) Because the company has no beginning cor) ending Inventories and only Jobs D-70 & 2.200 were started, completed as sold doring the year, the cost of goods sold is equal to the som of the man of acturing costs assigned to both jobs of $3398200 [ie, & 1668600+ $ 1729600]