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 manufactured for March.

Answer 1

Cost of Job 359 :-

Particulars	Amount($)
Beginning Work in Process	4800
Add : Direct Material	3300
Add : Direct Labor	5000
Add : Overhead cost Applied (70% * $3300)	2310
Total Cost of job 359	15410

Cost of Job 360 :-

Particulars	Amount($)
Beginning Work in Process	6300
Add : Direct Material	4100
Add : Direct Labor	3000
Add : Overhead cost Applied (70% * $4100)	2870
Total Cost of job 360	16270

Cost of Goods Sold :-

= Cost of Job 359 + Cost of Job 360

= $15410 + $16270

= $31680

cost of job 361 in not include in cost of goods sold, because job 361 is not complete.