Question

Madtack Company uses a job-order costing system and started the month
of March with only one job in process (Job #359). This job had $5,000
of total cost assigned to it at the beginning of March. Madtack applies
overhead to jobs at a rate of 175% of direct labor cost. During March,
Madtack assigned production costs as follows to the jobs worked on
during the month:

                             Job #359      Job #360      Job #361
direct materials ..........   $1,000         $5,000       $3,000
direct labor ..............    2,000          3,000        2,000

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 Company had total actual
overhead cost of $10,700 for the month of March. 

Calculate Madtack's cost of goods manufactured for March.

Answer 1

Job Cost sheet
			Job 359	Job 360	Job 361	Total
Beginning Inventoty of WIP			5000			5000
Add: Material			1000	5000	3000	9000
Add: Labour			2000	3000	2000	7000
Add: Overheads applied @175% of DLC			3500	5250	3500	12250
Total Cost			11500	13250	8500	33250
Status			WIP	Sold	FG
Schedule showing Cost of Goods manufactured
Beginning Inventory of WIP				5000
Add: Current cost of Manufacture:
Material added in Jobs			9000
Labour added in Jobs			7000
Overheads applied (175% of 7000)			12250
Total Current cost of manufacturing				28250
Cost of Goods manufacturing				33250
Less:Ending inventory of WIP				11500
Cost of Goods manufactured (Job No. 360/361)				21750