Smithson Company uses a job-order costing system and has two manufacturing depar

Question

Smithson 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-75 and Job C-100. It provided the following information related to those two jobs:

  

  

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

eBook & Resources

eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 3

8.

value:
3.00 points

Required information

Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

   

  

Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.)

   

  

If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.)

   

  

   

References

eBook & Resources

WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.

Difficulty: HardLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.

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9.

value:
3.00 points

Required information

  

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

  

  

Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

   

  

If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.)

   

  

What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.)

   

Smithson 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:

Explanation / Answer

1d)

2a)

2b)

1a Calculation of predetermined plantwide overhead rate Total fixed manufacturing cost      1,000,000.00 Total Variable cost($58000*5)          290,000.00 Total Manufacturing Cost      1,290,000.00 Total Machine hours            58,000.00 predetermined plantwide overhead rate                     22.24

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