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

2.
a. Plantwide Predetermined Overhead rate = ($780000 + 21000 x $4 + $220000 + 32000 x $1.50) / 53000 = $21.36 per machine hour

b.
Job D-70
Manufacturing Overhead applied = 21000 x $21.36 = $448560
Total Manufacturing Costs = $690000+380000+448560 = $1518560

Job C-200
Manufacturing Overhead applied = 32000 x $21.36 = $683520
Total Manufacturing Costs = $540000 + 480000 + 683520 = $1703520

c. Bid Price
Job D-70 = $1518560 x 150% = $2277840
Job C-200 = $1703520 x 150% = $2555280

d. Details for units sold is not given, so cost of goods sold could not be worked out.

Assuming all units are sold
Cost of Goods Sold = $1518560 + 1703520 = $3222080

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