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Smithson 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 | 27,000 | 37,000 | 64,000 | |||
| Fixed manufacturing overhead costs | $ | 720,000 | $ | 210,000 | $ 930,000 | |
| Variable manufacturing overhead per machine hour | $ | 5.00 | $ | 5.00 | ||
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During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs”Job D 75 and Job C 100. It provided the following information related to those two jobs: |
| Job D 75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 376,000 | $ | 323,000 | $ | 699,000 |
| Direct labor cost | $ | 250,000 | $ | 180,000 | $ | 430,000 |
| Machine hours | 22,000 | 5,000 | 27,000 | |||
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| Job C 100: | Molding | Fabrication | Total | |||||
| Direct materials cost | $ | 210,000 | $ | 230,000 | $ | 440,000 | ||
| Direct labor cost | $ | 120,000 | $ | 240,000 | $ | 360,000 | ||
| Machine hours | 5,000 | 32,000 | 37,000 | |||||
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Smithson had no overapplied or underapplied manufacturing overhead during the year. (Round all answer to two decimals places) 1.
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If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D 75 and Job C 100?
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| What is Smithson’s cost of goods sold for the year? |