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Posted: January 19th, 2024
Job-Order Costing System Assignment
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:
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| Molding | Fabrication | Total | |||||
| Machine-hours | 28,000 | 38,000 | 66,000 | ||||
| Fixed manufacturing overhead costs | $ | 780,000 | $ | 300,000 | $ | 1,080,000 | |
| Variable manufacturing overhead cost per machine-hour | $ | 6.00 | $ | 6.00 | |||
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:
| Job D-70: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 375,000 | $ | 326,000 | $ | 701,000 |
| Direct labor cost | $ | 240,000 | $ | 140,000 | $ | 380,000 |
| Machine-hours | 19,000 | 9,000 | 28,000 | |||
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| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 250,000 | $ | 260,000 | $ | 510,000 |
| Direct labor cost | $ | 160,000 | $ | 240,000 | $ | 400,000 |
| Machine-hours | 9,000 | 29,000 | 38,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 1
Required:
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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 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
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d. What is Delph’s cost of goods sold for the year? Get Accounting homework help today
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