[The following information applies to the questions displayed below.] Smithson C

Question

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

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.
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Assume Smithson uses a plantwide overhead rate based on machine-hours.  

Required:

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

Predetermined Overhead Rate: ___________________

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

  

Job D-75: total manufacturing costs = ___________

Job C-100: total manufacturing costs = ____________

1-c. 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.)

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

Molding Fabrication Total Machine-hours 30,000 40,000 70,000 Fixed manufacturing overhead costs $ 700,000 $ 250,000 $ 950,000 Variable manufacturing overhead per machine-hour $ 5.00 $ 5.00

Explanation / Answer

1A Total Fixed Manufacturing OH 950000 Total Machine Hours 70000 Predetermined Rate 13.57 1B Job D-75 Job C-100 Direct Material 702000 440000 Explanation Direct Labor 340000 360000 Job D-75 Job C-100 Variable MOH 150000 200000 30000*5 40000*5 Fixed MOH 407143 542857 30000*13.57 40000*13.57 Total Manufacturing OH Cost 1599143 1542857 1C Job D-75 Job C-100 Total Manufacturing OH Cost 1599143 1542857 Bid Price(120% of MOH Cost) 1918971 1851429 1D Total Cost of Goods Sold: Job D-75 1599143 Job C-100 1542857 3142000

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