Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 23,000 $ 740,000 $ 4.00 Fabrication 34,000 $240,000 Total 57,000 $ 1.00 $980,000 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 Molding $ 370,000 $ 240,000 16,000 Molding Fabrication $ 320,000 $ 180,000 7,000 Total $690,000 $ 420,000 23,000 Total $ 560,000 $ 380,000 Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. $ 280,000 $ 100,000 7,000 Fabrication $ 280,000 $ 280,000 27,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 23,000 $ 740,000 $ 4.00 Fabrication 34,000 $240,000 Total 57,000 $ 1.00 $980,000 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 Molding $ 370,000 $ 240,000 16,000 Molding Fabrication $ 320,000 $ 180,000 7,000 Total $690,000 $ 420,000 23,000 Total $ 560,000 $ 380,000 Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. $ 280,000 $ 100,000 7,000 Fabrication $ 280,000 $ 280,000 27,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year: During the year,...
-
Businesses all over the world realized the benefits of having social media platforms to communicate with; Customers, suppliers, investors, and others stallholders. You are required to : compare Two...
-
(c) Solve, using Laplace transforms, the initial value problem dx dt - 3 dt dx +2x=2e3t given that at t = 0, x = 5, and = 7 dt
-
In an attempt to prepare propylbenzene, a chemist alkylated benzene with 1-chloropropane and aluminum chloride. However, two isomeric hydrocarbons were obtained in a ratio of 2:1, the desired...
-
Impairment loss for 2013 for the customer lists and brand names, following U.S. GAAP , is a. $ 0 b. $ 300,000 c. $1,800,000 d. $2,100,000 Use the following information to answer questions 5-8 below:...
-
Nursing staffing plan. Using a 14 day pay period, Assumptions. Each Registered nurse will work for 8 hours per shift for five shifts a week = 80 hours per pay period. This is equal to 1 FTE. Each LPN...
-
The Apollo Company is a catalogue-based retailer. The following describes Apollos operations in its first two years of business: Required 1. Prepare an income statement for each year assuming that...
-
On January 1, 2013, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pools value on this date was $660,000. The 2013 and 2014 ending inventory valued at...
-
Imagine you are finally going to start the business you have always dreamt about. Writing a Business Model Canvas would be your first step. Fill in the attached fillable Business Model Canvas using...
-
Your company is considering acquiring a private company (New Co., Inc.). The CFO has asked you to review the financial statements, look for key trends, and develop financial/operational questions to...
-
What are the religious beliefs, values, ways of thinking for the Native American culture before the U.S. colonial expansion? What were Native Americans beliefs on life after death before they...
-
Post the journal entries to the accounts in the ledger Bal. Bal. Bal. Bal. + + + + + Cash 7,500 15,300 Supplies Accou Re ivable 13,400 A Prepaid Rent 3,000 + + + +
-
November 2, 2021 Issued a note receivable to a customer. The customer could not pay its account receivable on time, so PP traded the account receivable for a note receivable. The amount was $8,635....
-
16. On March 17, 2023, the bookkeeper of GIFT Inc. noticed that she made an error when recording a $44,000 capital expenditure in the prior fiscal year. She posted the amount to the repairs and...
-
For the circuit shown to the right, after the switch is closed, the transient current i (in A) is given by i=1.5(1+0) Find the first three nonzero terms of the Macleurin expansion of this function....
-
Final essay should be compares two companies AIG Financial Products Corp and Silicon Valley Bank 1) compares and contrasts the bankrupt firms regarding their success phases, their decline phases, the...
-
What is a Structure? Mention an example of a gravity-defying structure and explain the advances which made it possible to build it. What is the main structural material used in the Burj Al Arab hotel...
-
Smiths Family Fashions implemented a balanced scorecard performance measurement system several years ago. Smiths is a locally owned clothing retailer with fashions for men, women, teens, and...
-
The following T-accounts contain keyed entries representing five transactions involving the stockholders' equity of Riverside, Inc.: Required Using this information, give detailed descriptions,...
-
Jenna Smith recently purchased an annuity contract that will pay her \(\$ 375,000\) per year for the next seven years. According to Smith's calculations, the estimated internal rate of return on this...
-
Lundholm Corp. is considering the purchase of a robotic machine that would replace a manual labor production task. The purchase and installation of this machine would require an upfront cash...
Study smarter with the SolutionInn App