Question

[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 24,000 33, een $740, eee $ 220,eee $ 4.ee $ 1.ee Total 57,eee $960, eee Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 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 Molding Fabrication Total Direct materials cost $ 370,000 $ 320,000 $690,000 Direct labor cost $ 220,000 $ 160,000 $380,eee Machine-hours 14.ee 10,000 24,000

Answer 1

Requirement (1) Particulars Total Fixed Manufacturing cost Total Variable Manufacturing cost (24,000 MH x $4) (33,000 MH x $1) Total Manufacturing Cost Divided by: Total Machine hours Departmental Pre Determined OH Rate Molding Department Fabrication Department $ 740,000 $ 220,000 $ 96,000 $ 33,000 $ 836,000 $ 24000 34.83 $ 253,000 33000 7.67 $ Requirement (16) Compute the Total Manufacturing Cost: Particulars Direct Material Direct Labour Manufacturing Overhead 14000*34.83+10000*7.67 10000*34.83+23000*7.67 $ $ $ Job D-70 690,000 $ 380,000 $ 564,320 $ Job C-200 520,000 400,000 524,710 Total Manufacturing Cost $ 1,634,320 $ 1,444,710 Requirement (10) Compute the Bid Prices : Particulars Total Manufacturing Cost Add : 150% Markup Bid Prices $ $ $ Job D-70 1,634,320 $ 2,451,480 $ 4,085,800 $ Job C-200 1,444,710 2,167,065 3,611,775 Requirement (10) Calculate the cost of goods sold: $ 3,079,030 Note : Since No Beginning and Ending FG Inventory, Manufacturing cost Equals Cost of goods sold Note : Please comment down for any further clarifications Note : Pre Determined Overhead Rate Rounded off to 2 Decimals and taken same for calculation Purpose