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Delph Company uses ajob-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
26,000
36,000
62,000
Fixed manufacturing overhead costs
$ 750,000
$ 260,000
$1,010,000
Variable manufacturing overhead cost
per machine-hour
$ 5.40
Job D-70:
Direct materials cost
$ 378,000
$ 322,000
$ 700,000
Direct labor cost
$ 240,000
$ 120,000
$ 360,000
17,000
9,000
Job C-200:
$ 230,000
$ 210,000
$ 440,000
$ 150,000
$ 410,000
27,000
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:
Question 1: Assume Delph uses departmental predetermined overhead rates based on machine-hours.
Question 2: Compute the departmental predetermined overhead rates. Compute the total manufacturing cost assigned to Job D-TD and Job C-2DO.
Question 3: If Delph establishes bid prices that are 130% of total manufacturing costs, what bid prices would it have established for Job D-7D and b C-EDO?
Question 4: What is Delph's cost of goods sold for the year?
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