Madtack Company uses a job-order costing system and started the month of March w

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 .....    $3,500        $6,300        $4,800  COSTS ADDED DURING MARCH direct materials ..............    $4,600        $3,300        $4,900 direct labor ..................     3,000         4,000         5,000  Madtack applies overhead to jobs at a rate of 125% of direct labor cost. 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 $18,000.  Calculate the cost of goods sold reported by Madtack Company for March after the overhead variance has been closed. Do not use decimals in your answer. 

Explanation / Answer

Job 359 Job 360 Job 361 total Beginning work in process 3,500 6,300 4,800 14,600 cost added during the year Direct materials 4,600 3,300 4,900 12,800 direct labor 3,000 4,000 5,000 12,000 overhead applied 3750 5000 6250 15000 total cost added 11,350 12,300 16,150 39,800 total cost of job 14,850 18,600 20,950 54,400 overhead applied 15,000 actual overhead 18,000 overhead under applied 3,000 cost of goods sold unadjusted cost of goods sold (job 360) 18,600 Add:under applied overhead 3,000 Adjusted cost of goods sold 21,600 answer

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