Question

Required information Exercise 2-15 (Algo) 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 Molding Fabrication 24, eee 33,eee $740, eee $ 220, eee $ 4.00 $ 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 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 370,98 $ 320,000 $690,000 $ 220, eee $ 160,000 $380, eee 14, eee 1e, eee 24,000

Answer 1

Requirement (a) Estimated Fixed Manufacturing Overhead $ 960,000 Estimated Variable Manufacturing Overhead $ 129,000 (24000*4)+(33000*1) Estimated Total Manufacturing Overhead $ 1,089,000 Estimated Total Machine Hours 57000 Predetermined Overhead Rate $ 19.11 Requirement (b) Particulars Direct material Direct Labour Manufacturing Overhead applied 24000*19.11 33000*19.11 Total Manufacturing Cost Job D-70 Job C-200 $ 690,000 $ 520,000 $ 380,000 $ 400,000 $ 458,640 $ 630,630 $ 1,528,640 $1,550,630 Requirement (c) Particulars Total Manufacturing Cost Add : Markup (150%) Bid Price Job D-70 Job C-200 $ 1,528,640 $1,550,630 $ 2,292,960 $2,325,945 $ 3,821,600 $3,876,575 Requirement (d) Cost of goods sold $3,079,270 Note : Do Comment for any issues