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 23,800 35,000 $780,000 $ 260,000 $ 5.00 $ 2.69 Total 58,000 $1,040,000 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 Molding Fabrication Total Direct materials cost $ 370,000 $ 320,000 $690,000 Direct labor cost $ 240,000 $ 140,000 $380,000 Machine-hours 15,000 8,000 23,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 280,000 $ 200,000 $480,000 $ 100,000 $ 240,000 $340,000 8,800 27,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

	Molding	Fabrication
Fixed manufacturing overhead cost	780,000	260,000
Machine hours	23,000	35,000
Fixed manufacturing rate per hour	33.91	7.43
Variable manufacturing overhead rate	5.00	2.00
Pre determined overhead rate	38.91	9.43
Cost Assigned
	D-70	C-200
Direct Material cost	690,000	480,000
Direct Labor Cost	380,000	340,000
Overheads:
Molding	583,650	311,280
Fabrication	75,440	254,610
Total cost assigned	1,729,090	1,385,890
Bid Price
	D-70	C-200
Total cost	1,729,090	1,385,890
Bid Price	2,593,635	2,078,835
Cost of Goods sold = Cost of jobs	3,114,980