Question

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 20,000 $ 700,000 $ 3.ee Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Fabrication 30,000 $ 210,000 $ 1.00 Total 50,609 $ 910,000 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 $375,000 $325,000 $ 700,000 $ 200,000 $ 160,000 $ 360,000 14,000 6,000 20,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 300,000 $250,000 $ 550,000 $ 175,000 $225,000 $400,000 6,000 24,000 30,000 Dein hari nn underapplied or overapplied manufacturing overhead during the year

Answer 1

1a)	Departmental predetermined overhead rates
	Molding department
	Fixed manufacturing overhead			(700,000/20000)=		35.00
	Variable manufacturing overhea					3.00
	predetermined overhead rate					38.00
	Fabrication department
	Fixed manufacturing overhead			(210000/30000)=		7.00
	Variable manufacturing overhea					1.00
	predetermined overhead rate					8.00
	Molding department			38.00	per MH
	Fabrication department			8.00	per MH
1b)	total manufacturing cost assinged
					job D-70
					molding	Fabrication	total
	Direct materials cost				375,000	325,000	700,000
	direct labor cost				200,000	160,000	360,000
	overhead assigned
	molding 38*14000				532000		532000
	Fabrication 8*6,000					48000	48000
	total manufacturing cost				1,107,000	533,000	1,640,000
	job c-200
					molding	Fabrication	total
	Direct materials cost				300,000	250,000	550,000
	direct labor cost				175,000	225,000	400,000
	overhead assigned
	molding	38*6000			228000		228000
	Fabrication 11.59*28000	8*24000				192000	192000
	total manufacturing cost				703,000	667,000	1,370,000
				total manufacturing
				cost
	job D-70			1,640,000
	Job C-200			1,370,000
1c)	Bid price
				cost
	job D-70			2,460,000
	Job C-200			2,055,000
1d)	cost of goods sold			3,010,000