Question

Madtack Company uses a job-order costing system and started the month of March with three jobs in process. The cost of beginning work in process plus the costs added during March are shown below: Job #359 Job #360 Job #361 beginning work in process ..... $4,800 $6,300 $3,500 COSTS ADDED DURING MARCH direct materials .............. $3,300 $4,100 $4,600 direct labor .................. 5,000 3,000 4,000 Madtack applies overhead to jobs at a rate of 70% of direct materials used. During March, Madtack completed and sold Job #360. Job #361 was also completed but was not sold by the end of March. Job #359 was not completed by the end of March. Madtack's actual overhead cost for the month of March totaled $9,500. Calculate Madtack's cost of goods sold for March after the overhead variance is closed.

Answer 1

	Job 359	Job 360	Job 361	Total
Beginning Work in process	4800	6300	3500	14600
Add:
Direct Material	3300	4100	4600	12000
Direct Labor	5000	3000	4000	12000
Applied Overhead(70%*DM)	2310	2870	3220	8400
Total cost	15410	16270	15320	47000
Overhead applied	8400
Actual Overhead	9500
Overapplied Overhead	-1100
Job 360 completed and sold
Unadjusted Cost of Good Sold	16270
Less : Overapplied Overhead	-1100
Adjusted Cost of Good Sold	17370