Question

Che Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments-Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year Molding Fabrication Machine-hours 25,000 35,000 60,000 Fixed manufacturing overhead costa $ 800,000 $ 290,000 $1,090,000 Variable manufacturing overhead cost per machine-hour 5.60 5.60 Total $ $ 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 $ 374, 000 $ 326,000 $ 700,000 $ 240,000 $ 150,000 $390,000 20,000 5,000 25,000 Job C-200: Direct materials coat Direct labor cost Machine-hours Molding Fabrication Total $ 270,000 $ 210,000 $ 480,000 S 180,000 $ 270,000 $450,000 5,000 30,000 35,000 Upton and Verlander had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

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Answer 2 a	Molding	Fabrication	Note
Machine Hours	25,000.00	35,000.00	A
Fixed Manufacturing overhead	800,000.00	290,000.00	B
Fixed Manufacturing overhead rate	32.00	8.29	C=B/A
Variable OH Rate	5.60	5.60	D
Departmental predetermined OH Rate	37.60	13.89	E=C+D
Workings for Answer 2 b	Job D-70	Job C-200
Machine hours used- Molding	20,000.00	5,000.00	F
Departmental predetermined OH Rate	37.60	37.60	See E
Overhead applied- Molding	752,000.00	188,000.00	G=F*E
Workings for Answer 2 b	Job D-70	Job C-200
Machine hours used- Fabrication	5,000.00	30,000.00	H
Departmental predetermined OH Rate	13.89	13.89	See E
Overhead applied- Fabrication	69,450.00	416,700.00	I=H*E

Answer 2 b- Job D-70	Molding	Fabrication	Total	Note
Direct Materials	374,000.00	326,000.00	700,000.00
Direct Labor	240,000.00	150,000.00	390,000.00
Overhead applied	752,000.00	69,450.00	821,450.00	See G, I
Manufacturing cost assigned to Job D-70	1,366,000.00	545,450.00	1,911,450.00	J
Answer 2 b- Job C-200	Molding	Fabrication	Total
Direct Materials	270,000.00	210,000.00	480,000.00
Direct Labor	180,000.00	270,000.00	450,000.00
Overhead applied	188,000.00	416,700.00	604,700.00	See G, I
Manufacturing cost assigned to Job C-200	638,000.00	896,700.00	1,534,700.00	K

Answer 2 c	Job D-70	Job C-200	Note
Manufacturing cost assigned	1,911,450.00	1,534,700.00	L= See J, K
Selling price at 120%	2,293,740.00	1,841,640.00	M=L*120%
Answer 2 d	Amount $	Note
Manufacturing cost assigned to Job D-70	1,911,450.00	See J
Manufacturing cost assigned to Job C-200	1,534,700.00	See K
Cost of good sold	3,446,150.00