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: 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 to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 370,000 $ 320,000 $690,000 $ 220,000 $ 160,000 $380,000 14,000 7,000 21,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 280,000 $ 260,000 $540,000 $ 180,000 $ 300,000 $480,000 7,000 25,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

	Molding	Fabrication
Fixed manufacturing overhead cost	780,000	220,000
Machine hours	21,000	32,000
Fixed manufacturing rate per hour	37.14	6.88
Variable manufacturing overhead rate	4	1.5
Pre determined overhead rate	41.14	8.38
Cost Assigned
	D-70	C-200
Direct Material cost	690,000	540,000
Direct Labor Cost	380,000	480,000
Overheads:
Molding	575,960	287,980
Fabrication	58,660	209,500
Total cost assigned	1,704,620	1,517,480
Bid Price
	D-70	C-200
Total cost	1,704,620	1,517,480
Bid Price	2,556,930	2,276,220
Cost of Goods sold = Cost of jobs	3,222,100