Required information   [The following information applies to the questions displayed below.]  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   28,000   38,000   66,000 Fixed manufacturing overhead costs $ 760,000 $ 260,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10          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 $ 373,000 $ 327,000 $ 700,000 Direct labor cost $ 220,000 $ 130,000 $ 350,000 Machine-hours   23,000   5,000   28,000      Job C-200: Molding Fabrication Total Direct materials cost $ 210,000 $ 240,000 $ 450,000 Direct labor cost $ 150,000 $ 270,000 $ 420,000 Machine-hours   5,000   33,000   38,000     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 130% 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information

 

[The following information applies to the questions displayed below.]
 

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   28,000   38,000   66,000
Fixed manufacturing overhead costs $ 760,000 $ 260,000 $ 1,020,000
Variable manufacturing overhead cost per machine-hour $ 5.10 $ 5.10    
 

  

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 $ 373,000 $ 327,000 $ 700,000
Direct labor cost $ 220,000 $ 130,000 $ 350,000
Machine-hours   23,000   5,000   28,000
 

  

Job C-200: Molding Fabrication Total
Direct materials cost $ 210,000 $ 240,000 $ 450,000
Direct labor cost $ 150,000 $ 270,000 $ 420,000
Machine-hours   5,000   33,000   38,000
 

 

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 130% 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?

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