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

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:

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:

  
Delph had no overapplied or underapplied manufacturing overhead during the year.

Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

If Delph establishes bid prices that are 140% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

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:

Explanation / Answer

a Estimated overhead: Molding 947000 =770000+(30000*5.9) Fabrication 496000 =260000+(40000*5.9) Total 1443000 Predetermined plantwide overhead rate = 1443000/70000= $20.61 b Job D-70 Job C-200 Direct materials cost 698000 480000 Direct labor cost 380000 360000 Overhead applied 618300 824400 Total manufacturing costs assigned 1696300 1664400 c Job D-70 Job C-200 Total manufacturing costs assigned 1696300 1664400 Add: Markup @ 40% 678520 665760 Bid prices 2374820 2330160 d Cost of goods sold for the year = 1696300+1664400= $3360700

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