Question

Required Informetlon 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 followlng estimates at the beginning of the year: Molding Fabrication Total Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 29,880 798 , 8ее 5.18 39,888 229 , 8ее 5.10 68,888 $1,810,880 $ $ 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: Molding Fabrication Total $380,8 324,8 704, 80e s 218,8 12,8 33e, 800 Job D-70: Direct materials cost Direct labor cost Machine-hours 23,еее 6,8ее 29,800 Molding Fabrication Total 230,80 298,8 528, 800 Job C-28e: Direct materials cost Direct labor cost Machine-hours 6,880 33,eee 39,800 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200 C. lf Delph establishes bid prices that are 130% of total manufacturing costs, what bid prices would it have established for Job D-70 and ЈоЬ С-200? d. What is Delph's cost of goods sold for the year?

Answer 1

a
	Predetermined overhead rate
Molding Department	32.34	=5.1+(790000/29000)
Fabrication Department	10.74	=5.1+(220000/39000)
b
	Job D-70	Job C-200
Direct materials cost	704000	520000
Direct labor cost	330000	370000
Overhead:
Molding Department	743820	194040
Fabrication Department	64440	354420
Total manufacturing cost	1842260	1438460
c
	Job D-70	Job C-200
Total manufacturing cost	1842260	1438460
Add: Markup @30%	552678	431538
Bid prices	2394938	1869998
d
Total manufacturing cost Job D-70	1842260
Total manufacturing cost Job C-200	1438460
Cost of goods sold	3280720