Question

Help Save & Exit S Check my CYMI 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: Molding Fabrication Total Machine-hours 20,000 30,000 50,000 Fixed manufacturing overhead costs $700,000 $ 210,000 910,000 Variable manufacturing overhead cost per machine- hour $ 3.00 $ 1.00 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: Molding Fabrication Total $375.000 $ 325,000 $700,000 Job D-70: Direct materials cost Direct labor cost Machine-hours $200,000 $ 160,000 $360,000 14,000 6,000 20,000 < Prev 8 of 8 !! Next RI

Answer 1

2a
	Predetermined overhead rate
Molding Department	38.00	=3+(700000/20000)
Fabrication Department	8.00	=1+(210000/30000)
b
	Job D-70	Job C-200
Direct materials cost	700000	550000
Direct labor cost	360000	400000
Overhead:
Molding Department	532000	228000
Fabrication Department	48000	192000
Total manufacturing cost	1640000	1370000
c
	Job D-70	Job C-200
Total manufacturing cost	1640000	1370000
Add: Markup @50%	820000	685000
Bid prices	2460000	2055000
d
Total manufacturing cost Job D-70	1640000
Total manufacturing cost Job C-200	1370000
Cost of goods sold	3010000
Workings:
	Job D-70	Job C-200
Overhead:
Molding Department	=14000*38	=6000*38
Fabrication Department	=6000*8	=24000*8