5 Required information The following information applies to

5 Required information [The following information applies to the questions displayed below.J Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The Part 1 of 2 company provided the following estimates at the beginning of the year: 12.5 points Molding Fabrication Total 64,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 27,000 37,000 Skipped $ 770,000 300,000 $1,070,000 $5.60 5.60 eBook 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: Print References Job D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 380,000 324,000 $ 704,000 210,000 130,000 340,000 27,000 19,000 8,000 Job C-200: Direct materials cost 230,000 Direct labor cost Machine-hours Molding FabricationTotal $ 100,000 8,000 220,000 450,000 290,000 390,000 29,000 37,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Solution

Manufacturing over head

Predetermined over head rate is (1070000/64000)+ 5.7 = 22.32

Particulars	job d-70	job c 200	cost of goods sold
Direct material	704000	450000
Direct labour	340000	390000
Manufacturing over head	602640	825840
Total cost	1646640	1665840	3312480
Bid price	2305296	2332176