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: Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 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 $ 370,000 $ 220,000 13,000 Molding $ 240,000 $ 160 000 Fabrication $ 320,000 $ 180,000 10,000 Molding Fabrication $ 240,000 $ 280 000 23,000 $ 780,000 $ 3.00 Total $ 690,000 $ 400,000 23,000 Fabrication 35,000 $ 240,000 $ 1.50 Total $ 480,000 $ 440 000 Total 58,000 $ 1,020,000
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: Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 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 $ 370,000 $ 220,000 13,000 Molding $ 240,000 $ 160 000 Fabrication $ 320,000 $ 180,000 10,000 Molding Fabrication $ 240,000 $ 280 000 23,000 $ 780,000 $ 3.00 Total $ 690,000 $ 400,000 23,000 Fabrication 35,000 $ 240,000 $ 1.50 Total $ 480,000 $ 440 000 Total 58,000 $ 1,020,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text: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:
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Job D-70
Direct materials cost
Direct labor cost
Machine-hours
Job C-200
Direct materials cost
Direct labor cost
Machine-hours
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
$ 370,000
$ 220,000
13,000
Molding
$ 240,000
$ 160,000
10,000
Molding
23,000
$ 780,000
$ 3.00
Fabrication
$ 320,000
$ 180,000
10,000
Total
$ 690,000
$ 400,000
23,000
Fabrication
$ 240,000
Total
$ 480,000
$ 280,000
25,000
$ 440,000
35,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
35,000
$ 240,000
$1.50
Total
58,000
$ 1,020,000
2. Assume Delph chooses to combine its departmental rates from requirement 1 into 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 costs, 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?
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