Job-Order Costing System Assignment

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:

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Molding Fabrication Total
Machine-hours 28,000 38,000 66,000
Fixed manufacturing overhead costs $ 780,000 $ 300,000 $ 1,080,000
Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00


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 $ 375,000 $ 326,000 $ 701,000
Direct labor cost $ 240,000 $ 140,000 $ 380,000
Machine-hours 19,000 9,000 28,000


Job C-200: Molding Fabrication Total
Direct materials cost $ 250,000 $ 260,000 $ 510,000
Direct labor cost $ 160,000 $ 240,000 $ 400,000
Machine-hours 9,000 29,000 38,000

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

Exercise 2-15 Part 1


1. Assume Delph uses 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 140% of total manufacturing cost, 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? Get Accounting homework help today

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