Question

Required information Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2- 1, LO2-2, LO2-3, LO2-4) 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 Fabrication 21,000 31,000 $ 730,000 $ 300,000 $ 5.20 $ 5.20 Total 52,000 $1,030,000 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 $ 380,000 $328,000 $ 708,000 $ 250,000 $ 160,000 $410,000 16,000 5,000 21,000 Job C-2001 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 250,000 $260,000 $ 510,000 $ 170,000 $ 240,000 $410,000 5,000 26,000 31,000 Delph had no underapplied or overapplied manufacturing overhead during the year,

Answer 1

1) Predetermine overhead rate = (52000*5.2+1030000)/52000 = 25.01 per hour

2) Total manufacturing cost

	Job D-70	Job C-200
Direct material	708000	510000
Direct labor	410000	410000
Overhead	525210	775310
Total manufacturing cost	1643210	1695310

3) Bid price

Job D-70 = 1643210*1.3 = 2136173

Job C-200 = 1695310*1.3 = 2203903

4) Cost of goods sold = 1643210+1695310 = 3338520