2 Delph Company uses a job-order costing system and has two manufacturing depart

Question

2 Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The provided the following estimates at the beginning of the year an 1 of 2 34,889 s 720,000$ 240,000 $ 960,009 $5.54 % 5.50 During the year, the company had no beginning or ending inventonies 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 17,000 7,000 Direct labar cost s 170,00e 280,00 458,000 34,000 References Delph had no underapplied or overapplied manufacturing overhead during the year b Compute the total manufacturing cost assigned to Job D-70 and Job C-200 C If Delph es ld it h ed for Job D-70 and tablishes bid prices that are 130% of total manufacturing cost, what bid prices wou Job C-200? sold for the red 1D to 2 decimal places.) per MH Pre 23r6 Next >

Explanation / Answer

1) computation of predetermined overhead rate based on machine hours Predetermine overhead rate = Estimated total manufacturing overhead cost/estimated total amount of the allocation base Calculation of Manufacturing overhead cost Manufacturing oh cost = estimated total fixed manufacturing cost+estimated variable cost permachine hour for molding* machine hour for molding required to support estimated production +estimated variable manufacturing oh cost machine hour for facbrication * machine hour for fabrication required to support estimated production total manufacturing overhead cost = 960000+(5.50*24000)+(5.50*34000) total manufacturing overhead cost = 1279000 Computation of predetermine overhead rate Predetermine overhead rate = Estimated total manufacturing overhead cost/estimated total amount of the allocation base Predetermine overhead rate = 1279000/58000 = 22.05 the plantwide predetermine overhead rate is $ 22.05 per machine hour C) Calculation of Bid price of job D-70 first of all we have to calculate total manufacturing cost of job D-70 particulars Molding Fabrication total Dierct material 370000 324000 694000 Direct labour 200000 140000 340000 overheads 374850 154350 529200 ( machine hrs* predetermined rate) (17000*22.05) (7000*22.05) total manufacturing cost 944850 618350 1563200 total manufacturing cost for job D-70= 1563200 Total manufacturing cost to job C-200 particulars Molding Fabrication total Dierct material 260000 230000 490000 Direct labour 170000 280000 450000 overheads 154350 595350 749700 ( machine hrs* predetermined rate) (7000*22.05) (27000*22.05) total manufacturing cost 584350 1105350 1689700 total manufacturing cost for job C-200 = 1689700 Bid Price of Job D-70 Total manufacturing cost = 1563200 Bid Price of Job D-70 = (130% * total manufacturing cost) Bid Price of Job D-70= 130%*1563200 Bid price of JOB D-70= 2032160 Bid Price of Job C-200 Total manufacturing cost = 1689700 Bid Price of Job C-200 = (130% * total manufacturing cost) Bid Price of Job C-200= 130%*1689700 Bid Price of Job C-200= 2196610 D) Cost of goods Sold = opening /beginning inventory +purchases- closing inventory in the given question co has no opening and closing inventory when job started completed and production is sold during the year hence the cost of goods sold during the year will be Cost of goods Sold = manufacturing cost of joB D-70+Manufacturing cost of job C-200 Cost of goods sold = $1563200+$1689700 Cost of goods sold = $3252900

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.