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 20,000 $ 700,000 $ 3.00 Fabrication 30,000 $ 210,000 Total 50,000 $910,000 $ 1.00 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 Direct labor cost Machine-hours Job C-200: Direct materials cost Direct labor cost Machine-hours Molding $ 375,000 Fabrication $ 325,000 $ 160,000 6,000 $ 200,000 14,000 Fabrication Molding $ 300,000 $ 175,000 6,000 $ 250,000 $ 225,000 24,000 Total $ 700,000 $ 360,000 20,000 Total $550,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. 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 costs, 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 20,000 $ 700,000 $ 3.00 Fabrication 30,000 $ 210,000 Total 50,000 $910,000 $ 1.00 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 Direct labor cost Machine-hours Job C-200: Direct materials cost Direct labor cost Machine-hours Molding $ 375,000 Fabrication $ 325,000 $ 160,000 6,000 $ 200,000 14,000 Fabrication Molding $ 300,000 $ 175,000 6,000 $ 250,000 $ 225,000 24,000 Total $ 700,000 $ 360,000 20,000 Total $550,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. 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 costs, 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,...
-
What is the recommended way to create a new PivotTable style that is close to an existing style? Select an answer: Duplicate the existing style and then Modify the new style. Apply the existing style...
-
A vertical force P is applied to the ends of cord AB of length a and spring AC. If the spring has an unstretched length δ, determine the angle θ for equilibrium. Given: P = 10 lb δ...
-
Bobbie Howell, the managing partner of the law firm Howell, Bagan, and Clark, LLP, makes asset acquisition and disposal decisions for the firm. As managing partner, she supervises the partners in...
-
1. How are percentage changes in a currencys value measured? Illustrate your answer numerically by assuming a change in the Thai bahts value from a value of $0.022 to $0.026. 2. What are the basic...
-
On February 20, 2009, Cedar Valley Aviation, a wholly owned subsidiary of Aerial Services, Inc. (ASI), brought a Piper 522AS (Cheyenne II) in for maintenance to Des Moines Flying Service, Inc....
-
Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost...
-
(a) 1. Assume a Heckscher-Ohlin world. The two countries are China and the U.S. The two goods are wheat and cloth and the two factors are labor and capital. Suppose each ton of wheat requires 4 units...
-
In December 2022, Haas Hospital decided to open a small Emergency Room (ER) for the public as part of its community engagement program. The hospital has appointed you as the lead project manager. The...
-
What is the profitability index for a project with an initial investment of 14,000, and has cash flows of 7,300 in year 1, 6,900 in year 2, and 5,700 in year 3? Should the project be accepted or...
-
Moshi Mining is set to open a gold mine in northern Tanzania. The mine will cost 6 million rand to open and will have an economic life of 12 years. It will generate a cash inflow of 1 million rand at...
-
1. Assume you are the new financial manager of the bed mattress firm, Fairy Tale Lullaby Ltd. The firm has always used payback period and accounting rate of return to appraise new investments. With...
-
The ABC plc cash flow statement for the latest financial year is given below. The appropriate discount and growth rates are 14 per cent and 4 per cent, respectively. Assume the marginal corporate tax...
-
Yuvhadit Ltd wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is looking up. As a result, the cemetery project will provide a net cash inflow of 80,000 for...
-
Research dimensions of quality and safety in healthcare, specifically long- term care, and how various industries can apply these concepts to improve operations. Using the Medicare Nursing Home...
-
In Exercises 105108, evaluate each expression without using a calculator. log(ln e)
-
Mickley Companys predetermined overhead rate is $ 14.00 per direct labor-hour and its direct labor wage rate is $ 12.00 per hour. The following information pertains to Job A-500: Direct materials . ....
-
What is a plant-wide overhead rate? Why are multiple overhead rates, rather than a plant-wide overhead rate, used in some companies?
-
In five years, Kent Duncan will retire. He is exploring the possibility of opening a self-service car wash. The car wash could be managed in the free time he has available from his regular...
-
Beginning in the 1920s, Russian physicist Pyotr Kapitza or Kapitsa (18941984, Nobel laureate in physics 1978) measured the Paschen-Back effect to an accuracy of 1 percent to 3 percent in various...
-
Consider transitions from a \({ }^{2} D\) state to a \(2 P\) state in the strong field PaschenBack regime. List all allowed transitions and show that there are only three different spectral lines.
-
What is the longest wavelength of the Paschen series spectrum? Would it be visible to the human eye?
Study smarter with the SolutionInn App