Question

Required) Required information [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 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Iding IllFabrication 29,000 39,000 720,000 $ 290,000 6.10 Total 68,000 $1,010,000 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 $ 372,000 $ 230,00 23,000 Fabrication Totall S 324,000 $ 696,000 $ 160,000 $ 390,000 6,000 29,000 Job C-2003 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 240,000 $ 220,000 $ 460,000 $ 140,000 $ 250,000 S 390,000 6,000 33,000 39,000 Delph had no underapplied or overapplied manufacturing overhead during the year Prey 3 of 4 Next >

Answer 1

2a
	Predetermined overhead rate
Molding Department	30.93	=6.1+(720000/29000)
Fabrication Department	13.54	=6.1+(290000/39000)
b
	Job D-70	Job C-200
Direct materials cost	696000	460000
Direct labor cost	390000	390000
Overhead:
Molding Department	711390	185580
Fabrication Department	81240	446820
Total manufacturing cost	1878630	1482400
c
	Job D-70	Job C-200
Total manufacturing cost	1878630	1482400
Add: Markup @30%	563589	444720
Bid prices	2442219	1927120
d
Total manufacturing cost Job D-70	1878630
Total manufacturing cost Job C-200	1482400
Cost of goods sold	3361030
Workings:
Overhead applied:
	Job D-70	Job C-200
Molding Department	=23000*30.93	=6000*30.93
Fabrication Department	=6000*13.54	=33000*13.54