6 Required information [The following information applies to the questions displ

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6 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 Part 2 of 2 company provided the following estimates at the beginning of the year: 2.5 points Total 64,000 Molding Fabrication 37,000 Machine-hours Pixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 27,000 Skipped $ 770,000 300,000 $1,070,000 $5.60 5.60 eBook Print References 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: Molding Fabrication Total Job D-70: Direct materials cost Direct labor cost Machine-hours 704,000 210,000 130,000 340,000 27,000 380,000 324,000 19,000 8,000 Job c-200: Direct materials cost 230,000 Direct labor cost Machine-hours Molding Fabrication Total 220,000 450,000 100,000 290,000 390,000 37,000 8,000 29,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Explanation / Answer

a) Molding Department Estimated total manufacturing overhead cost = $770,000 + $5.60 x 27000 hrs $921,200.00 ÷ Estimated total machine-hours 27000 Predetermined overhead rate $34.12 Per MH Fabrication Department Estimated total manufacturing overhead cost = $300,000 + $5.60 x 37000 hrs $507,200.00 ÷ Estimated total machine-hours 37000 Predetermined overhead rate $13.71 Per MH b) Total manufacturing costs assigned to Jobs D-70 and C-200 D-70 C-200 Direct Material $704,000.00 $450,000.00 Direct Labour $340,000.00 $390,000.00 Molding Department (19,000 MHs × $34.12 per MH; 8,000 MHs × $34.12 per MH) $648,251.85 $272,948.15 Fabrication Department (8,000 MH × $13.71 per MH; 29,000 MH × $13.71 per MH) $109,664.86 $397,535.14 Total manufacturing cost $1,801,916.72 $1,510,483.28 c) Bid prices for Jobs D-70 and C-200 Total manufacturing cost $1,801,916.72 $1,510,483.28 × Markup percentage (140%) 140.00% 140.00% Bid price $2,522,683.40 $2,114,676.60 d) Cost of goods sold is equal to the sum of the manufacturing costs assigned to both jobs. Total manufacturing cost Job D-70 $1,801,916.72 Total manufacturing cost Job C-200 $1,510,483.28 Cost of goods sold $3,312,400.00

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