Please help me with this problem? 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:   MoldingFabrication TotalMachine-hours 25,000 35,000 60,000Fixed manufacturing overhead costs$750,000$290,000$1,040,000Variable manufacturing overhead cost per machine-hour$5.30$5.30     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:MoldingFabricationTotalDirect materials cost$376,000$326,000$702,000Direct labor cost$210,000$180,000$390,000Machine-hours 17,000 8,000 25,000   Job C-200:MoldingFabricationTotalDirect materials cost$300,000$260,000$560,000Direct labor cost$150,000$270,000$420,000Machine-hours 8,000 27,000 35,000  Delph had no underapplied or overapplied manufacturing overhead during the year. 2. 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 120% 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?

Question
Asked Feb 5, 2020
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Please help me with this problem?

 

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:

  

  Molding Fabrication   Total
Machine-hours   25,000   35,000   60,000
Fixed manufacturing overhead costs $ 750,000 $ 290,000 $ 1,040,000
Variable manufacturing overhead cost per machine-hour $ 5.30 $ 5.30    
 

  

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: Molding Fabrication Total
Direct materials cost $ 376,000 $ 326,000 $ 702,000
Direct labor cost $ 210,000 $ 180,000 $ 390,000
Machine-hours   17,000   8,000   25,000
 

  

Job C-200: Molding Fabrication Total
Direct materials cost $ 300,000 $ 260,000 $ 560,000
Direct labor cost $ 150,000 $ 270,000 $ 420,000
Machine-hours   8,000   27,000   35,000
 

 

Delph had no underapplied or overapplied manufacturing overhead during the year.

 

2. 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 120% 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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Expert Answer

Step 1

“Hey, since there are multiple sub-parts posted, we will answer first three questions. If you want any specific sub-part to be answered then please specify the sub-part number in your message.”

Step 2

Predetermined factory overhead rate:

Normally, factory overhead costs are applied or allocated to cost of job based on predetermined factory overhead rate.

Step 3
  1. a.

 

Compute the pre-determined departmental overhead rate for Molding department.

 

Accounting homework question answer, step 3, image 1

 

Compute the pre-determined departmental overhead rate for Fabrication department.

 

Accounting homework question answer, step 3, image 2

 

...

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