Question

7 2, LO2-3, L02-4) (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: Part 2 of 2 Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 1.48 points Molding Fabrication 24,000 31,000 $760,000 $ 240,000 $ 3.00 $ 2.00 Total 55,000 $1,000,000 Skipped 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: eBook 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 14,000 10,000 24,000 Print Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 300,000 $ 200,000 $500,000 $ 120,000 $ 260,000 $380,000 10,000 21,000 31,000 References Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 2 2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?

Answer 1

Requirementi: Computation of Plant wide OH Rate Particulars Molding Department: Fabrication Department: Total Variable Overhead rate $ 3 $ 2 Total machine hours 24000 31000 Total Variable Overhead $ 72,000 $ 62,000 $ Total Fixed Overheads $ 7,60,000 $ 2,40,000 $ Total manufacturing Overhead (Fixed + Variable) $ Total machine hours Plant Wide Overhead rate $ 55000 1,34,000 10,00,000 11,34,000 55000 20.62 Computation of Department OH rate Particulars Molding Department: Fabrication Department: Fixed manufacturing overhead cost $ 7,60,000 $ 2,40,000 Machine hours 24000 31000 Fixed manufacturing rate per hour $ 32 $ 8 Variable manufacturing overhead rate $ 3 $ 2 Pre determined overhead rate $ 34.67 $ 9.74 Requirement2: Cost Assigned to Job D - 70 and C - 200 Particulars D-70 Direct Material cost $ Direct Labor Cost $ Overheads: Molding $ Fabrication $ Total cost assigned $ C-200 6,90,000 $ 3,60,000 $ 5,00,000 3,80,000 4,85,380 $ 97,400$ 16,32,780 $ 3,46,700 2,04,540 14,31,240 Requirement3: Computation of Bid Price: Particulars Total cost Bid Price (Cost*150%) D-70 $ $ C-200 16,32,780 $ 24,49,170 $ 14,31,240 21,46,860 Requirement4: Cost of Goods sold = Cost of jobs $ 30,64,020 * Kindly Comment down for any clarifications/ queries and please upvote.