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: Molding Fabrication Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Total 68,000 $ 710,000 $240,000 950,000 29,000 39,000 $ 5.605.60 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: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total 371,000 328,000 699,000 $. 200,000 170,000 $ 370,000 21,000 8,000 29,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 260,000 230,000 490,000 $ 160,000 280,000 440,000 8,000 31,000 39,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Solution

2a) Molding department rate = 710000/29000+5.60 = 30.08 per machine hour

Fabrication department rate = 240000/39000+5.60 = 11.75 per machine hour

b) Calculate total manufacturing cost assigned to job D-70 and Job C-200

Job C-200

c) Bid price Job D-70 = 1794680*150% = 2692020

Bid price job C-200 = 1534890*150% = 2302335

d) Cost of goods sold = 1794680+1534890 = $3329570

	Job D-70	Job C-200
Direct material	699000	490000
Direct labour	370000	440000
Overhead applied
Molding	21000*30.08 = 631680	8000*30.08 = 240640
Fabrication	8000*11.75 = 94000	31000*11.75 = 364250
Total	1794680	1534890