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: Total Molding Fabrication 39,000 29,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour 68,000 290,000 $710,000 $ $1,000,000 $ 5.80 $ 5.80 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 372,000 326,000 $698,000 $ 250,000 $ 140,000 $ 390,000 6,000 29,000 23,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 260,000 300,000 $560,000 $ 170,000 270,000 $ 440,000 6,000 33,000 39,000 Delph had no overapplied or underapplied manufacturing overhead during the year.

Answer 1

Summary:

2.a. Formula is Estimated fixed overhead cost / estimated machine hour

So, answer will be $ 24.48 for Molding Department and $ 7.44 for Fabrication Department.

2.b. Total manufacturing cost will be fixed coat + variable cost

So, answer will be $ 775880 for job D-70 and $ 618600 for job C-200

2.c. Bid price is 130 % of total manufacturing cost

So, answer will be $ 1008644 for job D-70 and $ 804180 for Job C-200

2.d. cost f goods sold is

Opening inventory + purchase + manufacturing cost - closing inventory.

So, answer will be $ 1863880 for job D-70 and $ 1618600 for job C-200.