EXERCISE 3-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs L03-1, LO3-2, L03-3, L03-4 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 During the year, the company had no beginning or ending inventories and it started, com- pleted, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs: Direct materials cost... Direct labor cost. Machine-hours... .... a. b. C. ... d. Molding 20,000 $700,000 $3.00 Fabrication Total 50,000 30,000 $210,000 $910,000 $1.00 Molding Fabrication Total $375,000 $325,000 $700,000 $200,000 $160,000 $360,000 14,000 6,000 20,000 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. Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. 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? What is Delph's cost of goods sold for the year? Molding Fabrication Total $300,000 $250,000 $550,000 $175,000 6,000 $225,000 $400,000 24,000 30,000 1000
EXERCISE 3-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs L03-1, LO3-2, L03-3, L03-4 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 During the year, the company had no beginning or ending inventories and it started, com- pleted, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs: Direct materials cost... Direct labor cost. Machine-hours... .... a. b. C. ... d. Molding 20,000 $700,000 $3.00 Fabrication Total 50,000 30,000 $210,000 $910,000 $1.00 Molding Fabrication Total $375,000 $325,000 $700,000 $200,000 $160,000 $360,000 14,000 6,000 20,000 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. Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. 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? What is Delph's cost of goods sold for the year? Molding Fabrication Total $300,000 $250,000 $550,000 $175,000 6,000 $225,000 $400,000 24,000 30,000 1000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:8
Chapter 33
1.
EXERCISE 3-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs L03-1,
LO3-2, LO3-3, L03-4
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
3.
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, com-
pleted, and sold only two jobs-Job D-70 and Job C-200. It provided the following information
related to those two jobs:
a.
b.
in C.
Molding
oshib
20,000
$700,000
$3.00
Total
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.
Compute the plantwide predetermined overhead rate.
Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
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?
unein
d.
Fabrication
30,000 50,000
$210,000 $910,000
$1.00
Molding Fabrication
Total
$375,000 $325,000 $700,000
$200,000 $160,000 $360,000
14,000
6,000 20,000
d.
What is Delph's cost of goods sold for the year?
2. 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 costs, what bid prices
would it have established for Job D-70 and Job C-200?
What is Delph's cost of goods sold for the year?
What managerial insights are revealed by the computations that you performed in this prob-
lem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 dif-
fer from one another? Do the bid prices that you computed in requirements 1 and 2 differ from
one another? Why?)
on A
Molding Fabrication
Total
$300,000 $250,000 $550,000
$175,000 $225,000 $400,000
6,000
24,000
30,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education