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 Molding $ 370,000 $ 200,000 13,000 Molding 25,000 $ 720,000 $ 4.00 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: Fabrication $ 320,000 $ 140,000 12,000 Molding $ 260,000 $ 140,000 12,000 Total $ 690,000 $ 340,000 25,000 Job C-200 Direct materials cost Total $ 480,000 Direct labor cost Machine-hours Fabrication $ 220,000 $ 280,000 21,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. 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?
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 Molding $ 370,000 $ 200,000 13,000 Molding 25,000 $ 720,000 $ 4.00 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: Fabrication $ 320,000 $ 140,000 12,000 Molding $ 260,000 $ 140,000 12,000 Total $ 690,000 $ 340,000 25,000 Job C-200 Direct materials cost Total $ 480,000 Direct labor cost Machine-hours Fabrication $ 220,000 $ 280,000 21,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. 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?
Chapter1: Financial Statements And Business Decisions
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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
Molding
$ 370,000
$ 200,000
13,000
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
25,000
$ 720,000
$ 4.00
Fabrication
$ 320,000
$ 140,000
12,000
Molding
$ 260,000
$ 140,000
12,000
Total
$ 690,000
$ 340,000
25,000
Job C-200
Direct materials cost
Fabrication
$ 220,000
Direct labor cost
Machine-hours
$ 280,000
21,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
33,000
$ 280,000
$ 1.50
Total
$ 480,000
$ 420,000
33,000
Total
58,000
$ 1,000,000
Required:
1. Assume Delph uses departmental predetermined overhead rates based on machine-hours.
a. Compute the departmental predetermined overhead rates.
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 vear?
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