Delph Company uses a joborder costing system and has two man

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:

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:

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the departmental predetermined overhead rates.

Compute the departmental predetermined overhead rates. (Round the final answers to 2 decimal places.)

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

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

c. If Delph establishes bid prices that are 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

If Delph establishes bid prices that are 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

d. What is Delph’s cost of goods sold for the year?

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

Solution

Solution 2a:

Solution 2b:

Solution 2c:

Solution 2d:

Delph’s cost of goods sold for the year = Manufacturing cost of Job D70 + Manufacturing cost of C200

= $1,889,160 + $1,540,940 = $3,430,100