6 Required information The following information applies to

6 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 Part 2 of 2 company provided the following estimates at the beginning of the year: 2.5 points Total 64,000 Molding Fabrication 37,000 Machine-hours Pixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 27,000 Skipped $ 770,000 300,000 $1,070,000 $5.60 5.60 eBook Print References 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 Job D-70: Direct materials cost Direct labor cost Machine-hours 704,000 210,000 130,000 340,000 27,000 380,000 324,000 19,000 8,000 Job c-200: Direct materials cost 230,000 Direct labor cost Machine-hours Molding Fabrication Total 220,000 450,000 100,000 290,000 390,000 37,000 8,000 29,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Solution

a) Molding Department Estimated total manufacturing overhead cost = $770,000 + $5.60 x 27000 hrs $921,200.00 ÷ Estimated total machine-hours 27000 Predetermined overhead rate $34.12 Per MH Fabrication Department Estimated total manufacturing overhead cost = $300,000 + $5.60 x 37000 hrs $507,200.00 ÷ Estimated total machine-hours 37000 Predetermined overhead rate $13.71 Per MH b) Total manufacturing costs assigned to Jobs D-70 and C-200 D-70 C-200 Direct Material $704,000.00 $450,000.00 Direct Labour $340,000.00 $390,000.00 Molding Department (19,000 MHs × $34.12 per MH; 8,000 MHs × $34.12 per MH) $648,251.85 $272,948.15 Fabrication Department (8,000 MH × $13.71 per MH; 29,000 MH × $13.71 per MH) $109,664.86 $397,535.14 Total manufacturing cost $1,801,916.72 $1,510,483.28 c) Bid prices for Jobs D-70 and C-200 Total manufacturing cost $1,801,916.72 $1,510,483.28 × Markup percentage (140%) 140.00% 140.00% Bid price $2,522,683.40 $2,114,676.60 d) Cost of goods sold is equal to the sum of the manufacturing costs assigned to both jobs. Total manufacturing cost Job D-70 $1,801,916.72 Total manufacturing cost Job C-200 $1,510,483.28 Cost of goods sold $3,312,400.00