Question

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 Molding 27,000 $ 760,000 $ 5.40 Fabrication 37,000 $250,000 $ 5.40 Total 64,000 $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 Fabrication Total $ 379,000 $328,000 $ 707,000 $ 230,000 $ 160,000 $ 390,000 21,000 6,000 27,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication $ 220,000 $ 260,000 $ 150,000 $ 260,000 6,000 31,000 Total $ 480,000 $ 410,000 37,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

Answers

• Requirement 1

Part [a]

Working		Molding Department:	Fabrication Department:	Total
A	Variable Overhead rate	$                5.40	$                        5.40
B	Total machine hours	27,000	37,000	64,000
C = A x B	Total Variable Overhead	$         145,800	$                 199,800	$             345,600
D	Total Fixed Overheads	$         760,000	$                 250,000	$          1,010,000
E = C+D	Total manufacturing Overhead			$          1,355,600
F	Total machine hours			64,000
G = E/F	Plant Wide Overhead rate			$                  21.18

Part [b]

	Job D 70	Job C 200
Molding Department:
Direct material cost	$         379,000	$                 220,000
Direct Labor cost	$         230,000	$                150,000
Manufacturing Overhead	$         444,780	$                 127,080
Fabrication Department:
Direct material cost	$         328,000	$                 260,000
Direct Labor cost	$         160,000	$                 260,000
Manufacturing Overhead	$         127,080	$                 656,580
Total manufacturing cost assigned	$     1,668,860	$             1,673,660

Part [c]

		Job D 70	Job C 200
A	Total manufacturing cost assigned	$                              1,668,860	$     1,673,660
B = A x 130%	Bid Price	$                              2,169,518	$     2,175,758

Part [d]

Total manufacturing cost assigned
Job D 70	$                              1,668,860
Job C 200	$                              1,673,660
Cost of Goods Sold	$                              3,342,520