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 Fabrication 25,000 32,000 $780,000 $ 200,000 3.00 1.50 Total 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 Direct labor cost Machine-hours Molding Fabrication Total $370,000 $ 320,000 $690,000 $240,000 $ 140,000 $380,000 14,000 11,000 25,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $300,000 $ 220,000 $520,000 $160,000 $ 240,000 $400,000 11,000 21,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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?