Business, 11.02.2020 05:30 GreenHerbz206

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
Machine-hours 20,000 30,000 50,000
Fixed manufacturing overhead cost $ 700,000 $ 210,000 $ 910,000
Variable manufacturing overhead cost per machine-hour $ 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: Molding Fabrication Total
Direct materials cost $ 375,000 $ 325,000 $ 700,000
Direct labor cost $ 200,000 $ 160,000 $ 360,000
Machine-hours 14,000 6,000 20,000

Job C-200: Molding Fabrication Total
Direct materials cost $ 300,000 $ 250,000 $ 550,000
Direct labor cost $ 175,000 $ 225,000 $ 400,000
Machine-hours 6,000 24,000 30,000

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

Required:

1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Answers: 2

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