Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company…
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Question “Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company…”
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 20,000 $ 700,000 $ 3.ee Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Fabrication 30,000 $ 210,000 $ 1.00 Total 50,609 $ 910,000 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: Job D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $375,000 $325,000 $ 700,000 $ 200,000 $ 160,000 $ 360,000 14,000 6,000 20,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 300,000 $250,000 $ 550,000 $ 175,000 $225,000 $400,000 6,000 24,000 30,000 Dein hari nn underapplied or overapplied manufacturing overhead during the year
Required information 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-2002 d. What is Delph’s cost of goods sold for the year? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 10 Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental predetermined overhead rates. Predetermined overhead Tatos per MH per MH Molding Department Fabrication Department
Required information 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-2002 d. What is Delph’s cost of goods sold for the year? Complete this question by entering your answers in the tabs below. Required 1A Requited 1B Required 10 Required 1D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Total manufacturing cost Job D-70 Job C-200
Required information 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 1cRequired 1D bid prices that Assume Delph uses departmental predetermined overhead rates based on machine-hours. If Delph establish are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-2007 Bid price Job D.70 Job C-200
Required information 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1c Required 10 Assume Delph uses departmental predetermined overhead rates based on machine-hours. What is Delph’s cost of goods sold for the year? Cost of goods sold < Required 10
Answer
1a) | Predetermined overhead rates for departments | ||||||
Molding department | |||||||
Fixed manufacturing overhead | (700,000/20000)= | 35.00 | |||||
Overheating Variable Manufacturing | 3.00 | ||||||
Predetermined overhead rate | 38.00 | ||||||
Fabrication department | |||||||
Fixed manufacturing overhead | (210000/30000)= | 7.00 | |||||
Overheating Variable Manufacturing | 1.00 | ||||||
Predetermined overhead rate | 8.00 | ||||||
Molding department | 38.00 | per MH | |||||
Fabrication department | 8.00 | per MH | |||||
1b) | Total manufacturing cost | ||||||
Job D-70 | |||||||
Molding | Fabrication | total | |||||
Direct materials cost | 375,000 | 325,000 | 700,000 | ||||
Cost of direct labor | 200,000 | 160,000 | 360,000 | ||||
Overhead assigned | |||||||
Molding 38*14000 | 532000 | 532000 | |||||
Fabrication 8*6,000 | 48000 | 48000 | |||||
Total manufacturing cost | 1,107,000 | 533,000 | 1,640,000 | ||||
Job c-200 | |||||||
Molding | Fabrication | total | |||||
Direct materials cost | 300,000 | 250,000 | 550,000 | ||||
Cost of direct labor | 175,000 | 225,000 | 400,000 | ||||
Overhead assigned | |||||||
Molding | 38*6000 | 228000 | 228000 | ||||
Fabrication 11.59*28000 | 8*24000 | 192000 | 192000 | ||||
Total manufacturing cost | 703,000 | 667,000 | 1,370,000 | ||||
Total manufacturing | |||||||
Cost | |||||||
Job D-70 | 1,640,000 | ||||||
C-200 Job | 1,370,000 | ||||||
1c) | Bid price | ||||||
Cost | |||||||
Job D-70 | 2,460,000 | ||||||
C-200 Job | 2,055,000 | ||||||
1d) | Cost of goods sold | 3,010,000 |
Conclusion
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