Delph Company uses a job-order costing system and has two manufacturing departme
ID: 2414440 • Letter: D
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 underapplied or overapplied manufacturing overhead during the year.
QUESTIONS:
1: Assume Delph uses a plantwide predetermined overhead rate based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)
2. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours. If Delph establishes bid prices that are 130% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)
3.Assume Delph uses a plantwide predetermined overhead rate based on machine-hours. What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)
Molding Fabrication Total Machine-hours 24,000 34,000 58,000 Fixed manufacturing overhead costs $ 780,000 $ 240,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00Explanation / Answer
Working Notes,
Given,
Molding
Fabrication
Total
A
Machine-hours
24,000
34,000
58,000
B
Fixed manufacturing overhead costs
7,80,000
2,40,000
10,20,000
C
Fixed manufacturing overhead cost per machine hour
C=B/A
$ 17.59
Variable manufacturing overhead cost per machine-hour
$ 6
$ 6
1. ans
Job D-70:
Molding
Fabrication
Total
A
Direct materials cost
$ 3,74,000.00
$ 3,21,000.00
$ 6,95,000.00
B
Direct labor cost
$ 2,30,000.00
$ 1,70,000.00
$ 4,00,000.00
C
Machine-hours
16,000
8,000
24,000
D
Fixed cost (C x $ 17.59)
$ 2,81,440.00
$ 1,40,720.00
$ 4,22,160.00
E
Variable cost( C x 6)
$ 96,000.00
$ 48,000.00
$ 1,44,000.00
Total cost(A + B+D+E)
9,81,440
6,79,720
16,61,160
Job C-200:
Molding
Fabrication
Total
A
Direct materials cost
$ 3,00,000.00
$ 2,10,000.00
$ 5,10,000.00
B
Direct labor cost
$ 1,50,000.00
$ 2,20,000.00
$ 3,70,000.00
C
Machine-hours
8,000
26,000
34,000
D
Fixed cost (C x $ 17.59)
$ 1,40,720.00
$ 4,57,340.00
$ 5,98,060.00
E
Variable cost( C x 6)
$ 48,000.00
$ 1,56,000.00
$ 2,04,000.00
Total cost(A + B+D+E)
$ 6,38,720.00
$ 10,43,340.00
$ 16,82,060.00
2. ans
Job D-70
Job C-200
Total cost(A)
$ 16,61,160.00
$ 16,82,060.00
Bid prices(A x 130%)
$ 21,59,508.00
$ 21,86,678.00
3.ans
Cost of Goods Sold for the year
Total cost of (Job D-70 + Job C- 200)
Cost of Goods Sold for the year
$ 33,43,220.00 (1661160+1682060)
Given,
Molding
Fabrication
Total
A
Machine-hours
24,000
34,000
58,000
B
Fixed manufacturing overhead costs
7,80,000
2,40,000
10,20,000
C
Fixed manufacturing overhead cost per machine hour
C=B/A
$ 17.59
Variable manufacturing overhead cost per machine-hour
$ 6
$ 6
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