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 23,00 $ 710,000 5.50 Fabrication 33,eee $ 270,000 $ 5.50 Total 56, eee $980, eee 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-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 372,000 $ 324,000 $ 696,000 $ 210, eee $ 160, eee $370, eee 16,000 7,00 23,00 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 240, ese $ 260,000 $500, eee $ 110,000 $ 250,000 $ 360,000 7,000 26,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year,

Answer 1

2-a.
	Pre determined overhead rates
Molding Department [ ( 710000 / 23000 ) + 5.50 ]	36.37	per MH
Fabrication Department [ ( 270000 / 33000 ) + 5.50 ]	13.68	per MH

2-b.
	Job D-70		Job C-200
Direct materials cost		696000		500000
Direct labor cost		370000		360000
Overhead allocated :
Molding Department	581920 [ 16000*36.37 ]		254590 [ 7000*36.37 ]
Fabrication Department	95760 [ 7000*13.68 ]	677680	355680 [ 26000*13.68 ]	610270
Total manufacturing cost		1743680		1470270

2-c.
	Bid price [ 130% of total manufacturing cost ]
Job D-70 [ 1743680 * 130% ]	2266784
Job C-200 [ 1470270 * 130% ]	1911351

2-d.
Cost of goods sold = Total manufacturing cost of sold = 1743680 + 1470270	3213950