Required information [The following information applies to the questions display

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Required information [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: Molding Fabrication Total 30,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 20,000 50,000 700,000 210,000 910,000 $3.00 1.00 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 375,000 325,000 700,000 Direct labor cost Machine-hours Molding Fabrication Total 200,000 160,000 360, 000 14,000 6,000 20,000 ??? ?-200: Direct materials cost 300,000 250,000 550,000 Direct labor cost Machine-hours Molding Fabrication Total $175, 000 225, 000 400,000 6,000 24,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year

Explanation / Answer

Req 1. Total Overheads: Molding variable OH (20,000 MH @ 3) 60,000 fabrication Variable OH (30,000 MH @1) 30,000 Fixed (700,000+210,000) 910,000 Total Overheads: 1,000,000 Divide: Total MH (20,000+30,000) 50,000 Plantwide OH rate 20 per MH Req 1-b: JOB D-70 JOB C-200 Fabrication MH 6000 24000 Molding MH 14000 6000 Total MH 20,000 30,000 OH rate 20 20 OH assigned 400,000 600,000 Req 1-c: JOB D-70 JOB C-200 Direct material 700000 550000 Direct Labour Molding 200000 175000 fabrication 160000 225000 OH 400000 600000 Total Manufacturing Cost 1,460,000 1,550,000 Add: margin 50% 730,000 775,000 Bid prices 2,190,000 2,325,000 Req 1-d: COST OF G OODS SOLD: Job D-70 1,460,000 Job C-200 1,550,000 TOTAL COGS 3,010,000

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