Question

Check my 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-70t Direct materials cost 378,000 Direct labor cost Machine-hours Molding Fabrication Total 329,000 $ 707,000 220,000 140,000 $360,000 9,000 29,000 20,000 Job c-200: Direct materials cost 270,000 Direct labor cost Kachine-hours 220,000 $490,000 130,000 260,000 $ 390,000 30,000 39,000 9,000 Delph had no underapplied or overapplied manufacturing overhead during the yea 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. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D. 70 and Job C-200? d. What is Deiph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below Required 2A Required Required 2C Required 20 Compute the total manufacturing cost assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.) くPrex 5 of 5 Next > earch or type URL 6 9 delete

Answer 1

Answer

• All working forms part of the answer
• Requirement ‘a’

Working		Molding Department:	Fabrication Department:
A	Total Fixed Overheads	$              730,000	$             240,000
B	Total machine hours	29,000	39,000
C = A/B	Fixed overhead rate	$                   25.17	$                    6.15
D	Variable Overhead rate	$                     5.60	$                    5.60
E = C+D	Plantwide overhead rate	$                   30.77	$                11.75

• Requirement ‘b’

	Job D 70	Job C 200
Molding Department:
Direct material cost	$              378,000	$             270,000
Direct Labor cost	$              220,000	$             130,000
Manufacturing Overhead	$              615,400	$             276,930
Fabrication Department:
Direct material cost	$              329,000	$             220,000
Direct Labor cost	$              140,000	$             260,000
Manufacturing Overhead	$              105,750	$             352,500
Total manufacturing cost assigned	$          1,788,150	$         1,509,430

• Requirement ‘c’

		Job D 70	Job C 200
A	Total manufacturing cost assigned	$        1,788,150	$               1,509,430
B = A x 120%	Bid Price	$        2,145,780	$               1,811,316

• Requirement ‘d’

Cost of Goods Sold = Cost of Job D70 PLUS Job C200

= 1788150 + 1509430
= $ 3,297,580 = Answer