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 following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 29,80e 798 , 8ee 5.18 39,800 229 , 8ee 5.10 68,808 $1,010,eee $ s 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 $380,8 324,8 704, 80e s 218,8 12,8 33e, 800 23,eee 6,880 29,800 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 230,80 298,8 528, 800 148,80 23,8 37e, 80e 6,880 33,800 39,800 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph uses departmental predetermined overhead rates based on machlne-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200 C. If Delph establishes bld prices that are 130% of total manufacturing costs, what bld 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

Answer

a)

particulars	molding	fabrication	total
variable overhead per machine hour	5.10	5.10
machine hours	29000	39000	68000
total variable overhead	147900	198900	346800
fixed overhead	790000	220000	1010000
total overhead	937900	418900	1356800

predetermined overhead rate = 20

b

particulars	job D70	job C200
direct material	704000	520000
direct labor	330000	370000
manufacturing overhead	580000	780000
total manufacturing cost	1614000	1670000

c

bid price 130 % of manufacturing 2098200 2171000

d

cost of goods sold ( 1614000 + 1670000 ) 3284000