Delph Company uses a job - order costing system and has two manufacturing departments Molding and Fabrication.
Question:
Delph Company uses a joborder costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:
Molding Fabrication Total
Machinehours
Fixed manufacturing overhead cost $ $ $
Variable manufacturing overhead cost per machinehour $ $
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D and Job C It provided the following information related to those two jobs:
Job D Molding Fabrication Total
Direct materials cost $ $ $
Direct labor cost $ $ $
Machinehours
Job C Molding Fabrication Total
Direct materials cost $ $ $
Direct labor cost $ $ $
Machinehours
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise Algo Part
Required:
Assume Delph uses departmental predetermined overhead rates based on machinehours.
a Compute the departmental predetermined overhead rates.
b Compute the total manufacturing cost assigned to Job D and Job C
c If Delph establishes bid prices that are of total manufacturing cost, what bid prices would it have established for Job D and Job C
d What is Delphs cost of goods sold for the year?
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer