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 Total Machine-hours 21,000 33,000 54,000 Fixed manufacturing overhead cost $740, eee $ 260,000 $1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.60 1.50 $ 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 $ 370,000 $ 320,000 $690,000 $ 200,000 $ 160,000 $360,000 15,000 6,000 21,00 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 220,000 $ 260,000 $480,000 $ 160,000 $260,000 $420,000 6,000 27,00 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

Q1.

Given, Molding Fabrication OH costs $ 824,000 $ 309,500 DLH 21,000 33,000 a. Plantwide Predetermined OH Rate= Total Overhead Cost Total Machine Hour $824,000+[$4.00*21,000]+260,000+($1.50*33,000 $1,133,500 $20.99 MH 22,000+34,000 54,000 b. Particulars Direct material cost Direct Labor cost-Molding Overhead cost Total Manufacturing cost Molding Fabrication D-70 $ 370,000 $ 320,000 $ 690,000 $ $ 200,000 $ 160,000 $ 360,000 $ $ 314,850 $ 125,940 $ 440,790 $ $ 884,850 $ 605,940 $1,490,790 $ Molding Fabrication C-200 220,000 $ 260,000 $ 480,000 160,000 $ 260,000 $ 420,000 125,940 $ 566,730 $ 692,670 505,940 $ 1,086,730 $1,592,670 *Overhead Cost [$20.99*15,000] [$20.99* 6,000] [$20.99*6,000] [$20.99-27,000] C. Particulars D-70 C-200 Total Manufacturing cost $ 1,490,790 $1,592,670 50% of Total manufacturing cost $ 745,395 $ 796,335 Bid Price-150% $ 2,236,185 $2,389,005 d. Cost of goods sold= Particulars Amount Direct material cost $ 1,170,000 Direct Labor cost-Molding $ 780,000 Overhead cost [$20.36)-Molding $ 1,133,460 Total Manufacturing cost $ 3,083,460

-----------------------

Q2. The relavant question is not given.

----------------------------------------------

If you have any queries/doubts,Immediately drop your messages in the comment box !!!! I will help you...
Thanks!!!