Question

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		24,000		34,000	58,000
Fixed manufacturing overhead costs	$	790,000	$	250,000	$ 1,040,000
Variable manufacturing overhead per machine-hour	$	5.80	$	5.80

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	$	375,000	$	326,000	$	701,000
Direct labor cost	$	200,000	$	140,000	$	340,000
Machine-hours		15,000		9,000		24,000

  

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	200,000	$	230,000	$	430,000
Direct labor cost	$	170,000	$	260,000	$	430,000
Machine-hours		9,000		25,000		34,000
Delph had no overapplied or underapplied manufacturing overhead during the year.

Assume Delph uses a plantwide overhead rate based on machine-hours.

  

Required:

1-a.	Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

1-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

1-c.	If Delph establishes bid prices that are 130% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

1-d.	What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

Answer 1