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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:
Delph Company uses a job-order costing system and has two
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:
Delph Company uses a job-order costing system and has two
Delph had no overapplied or underapplied manufacturing overhead during the year.
Required:
1. Assume Delph uses a plantwide overhead rate based on machine-hours.
a. Compute the predetermined plantwide overhead rate.
b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200.
c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200?
d. What is Delph€™s cost of goods sold for the year?
2. Assume Delph uses departmental overhead rates based on machine-hours.
a. Compute the predetermined departmental overhead rates.
b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200.
c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? d. What is Delph€™s cost of goods sold for the year?
3. What managerial insights are revealed by the computations that you performed in this problem?
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