[The following information applies to the questions displayed below.] Delph Comp

Question

[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:

  

  

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 overapplied or underapplied manufacturing overhead during the year.

2.

value:
3.00 points

Required information

  

Compute the predetermined departmental overhead rates.

           

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

            

If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200?

            

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

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:

Explanation / Answer

2) Pre-determined over head rate

Total Mfg. Cost D-70 &c-200

Note over head : D- 70 = ( 14,000 X 38 ) + ( 6,000 X 10) = 582,000

C-200 = ( 6,000 X 38) + (24,000 X 10) = 468,000

Bid Price

D-70 = 1,642,000 X 150% = 2,463,000

C-200 = 1,418,000 X 150% = 2,127,000

Cost Of Goods Sold

= 1,642,000 + 1,418,000

=3,060,000

Particulars Modeling Fabrication fixed Over head 700,000 210,000 Variable ( 50,000 X 3) 60,000 90,000 Total Mfg. Overhead 760,000 300,000 Machine hours 20,000 30,000 Pre determined overhead rate 38 10

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