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 Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 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 $ 240,000 14,000 Molding Fabrication $ 320,000 $ 140,000 8,000 Molding 22,000 $ 720,000 $ 4.00 Fabrication Total $ 690,000 $ 380,000 22,000 Fabrication 30,000 $300,000 $ 1.50 Total Total 52,000 $ 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: Machine-hours Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 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 $ 240,000 14,000 Molding Fabrication $ 320,000 $ 140,000 8,000 Molding 22,000 $ 720,000 $ 4.00 Fabrication Total $ 690,000 $ 380,000 22,000 Fabrication 30,000 $300,000 $ 1.50 Total Total 52,000 $ 1,020,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$ 240,000
14,000
Molding
$ 280,000
$ 160,000
8,000
Required 2A Required 2B
Molding
22,000
$ 720,000
$ 4.00
Fabrication
$ 320,000
$ 140,000
8,000
Fabrication
$ 240,000
$ 240,000
22,000
Total
$ 520,000
$ 400,000
30,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
30,000
$ 300,000
$ 1.50
Total
$ 690,000
$ 380,000
22,000
Required 2C Required 2D
Total
52,000
$ 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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