Solution
A) Calculation of Departmental Predetermined Overhead Rates
Particulars | Amount ($) | |
Estimated Variable manufacturing overhead | 124,000 | =(23,000*4)+(32,000*1) |
Estimated Fixed manufacturing overhead | 940,000 | |
Total Estimated manufacturing overhead | 10,64,000 | |
Divide by Estimated Machine hours | 55,000 hrs | |
Predetermined overhead rate | 19.35 | per MH |
B) Calculation of total manufacturing cost | ||
Job D-70 | Job C-200 | |
Direct materials cost | $690,000 | $480,000 |
Direct labor cost | $380,000 | $400,000 |
Overhead applied |
$445,050 (23,000hrs x $19.35) |
$619,200 (32,000 hrs x $19.35) |
Total manufacturing cost | $15,15,050 | $14,99,200 |
C) Calculation of Bid Prices | ||
Job D-70 | Job C-200 | |
Total manufacturing cost | $15,15,050 | $14,99,200 |
Add: Markup @50% | $757,525 | $749,600 |
Bid prices | $22,72,575 | $22,48,800 |
D) Calculation of Cost of goods sold | ||
Total manufacturing cost Job D-70 | $15,15,050 | |
Total manufacturing cost Job C-200 | $14,99,200 | |
Cost of goods sold | $30,14,250 | |
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Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company...
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 23,000 33,000 $ 750,000 $250,000 $ 5.90 $ 5.90 Total 56,000 $1,000,000 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...
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 cost Variable manufacturing overhead cost per machine-hour Molding Fabrication 21,000 32,000 $780,000 $ 220,000 4.00 $ 1.50 Total 53,000 $1,000,000 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...
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 Total 23,000 32,000 55,000 $ 720,000 $ 220,000 $ 940,000 S 4.00 $ 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...
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 Total 23,000 32,000 55,000 $ 720,000 $ 220,000 $ 940,000 S 4.00 $ 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...
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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 cost Variable manufacturing overhead cost per machine-hour Molding Fabrication 21,000 32,000 $780,000 $ 220,000 $ 4.00 $ 1.50 Total 53,000 $1,000,000 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...
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