Required information The following information applies to th

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 Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 27,000 64,000 240,000 $1,010,000 37,000 $ 770,000 $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 Molding Fabrication Total $ 200,000 $ 170,000 $ 370,000 Job D-70: Direct materials cost $ 370,000 326,000 $ 696,000 Direct labor cost Machine-hours 18,000 9,000 27,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Tota.l $ 180,000 290,000 28,000 290,000 $ 220,000 $ 510,000 470,000 37,000 9,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Solution

2a Departmental predetermined overhead rates Molding department Fixed manufacturing overhead (770,000/27,000)= 28.52 Variable manufacturing overhea 5.10 predetermined overhead rate 33.62 Fabrication department Fixed manufacturing overhead (240,000/37000) 6.49 Variable manufacturing overhea 5.10 predetermined overhead rate 11.59 Molding department 33.62 per MH Fabrication department 11.59 per MH 2b) total manufacturing cost assinged job D-70 molding Fabrication total Direct materials cost 370,000 326,000 696,000 direct labor cost 200,000 170,000 370,000 overhead assigned molding 33.62*18000 605160 605160 Fabrication 11.59*9000 104310 104310 total manufacturing cost 1,175,160 600,310 1,775,470 job c-200 molding Fabrication total Direct materials cost 290,000 220,000 510,000 direct labor cost 180,000 290,000 470,000 overhead assigned molding 33.62*9000 302580 302580 Fabrication 11.59*28000 324520 324520 total manufacturing cost 772,580 834,520 1,607,100 total manufacturing cost job D-70 1,775,470 Job C-200 1,607,100 2c) Bid price cost job D-70 2,308,111 Job C-200 2,089,230 2d) cost of goods sold 3,382,570