[The following information applies to the questions displayed below.] Delph Company uses a job-order costing system...
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[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: 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 $ 1.00 57,000 $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 Total Molding $ 370,000 $ 240,000 16,000 Molding Fabrication $ 320,000 $ 180,000 7,000 $ 690,000 Direct labor cost Machine-hours Fabrication Job C-200 Direct materials cost $ 280,000 Direct labor cost Machine-hours $ 100,000 7,000 $ 280,000 $ 280,000 27,000 $ 420,000 23,000 Total $ 560,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates from requirement 1 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? [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: 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 $ 1.00 57,000 $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 Total Molding $ 370,000 $ 240,000 16,000 Molding Fabrication $ 320,000 $ 180,000 7,000 $ 690,000 Direct labor cost Machine-hours Fabrication Job C-200 Direct materials cost $ 280,000 Direct labor cost Machine-hours $ 100,000 7,000 $ 280,000 $ 280,000 27,000 $ 420,000 23,000 Total $ 560,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates from requirement 1 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?
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Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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