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 Madtack's cost of goods manufactured for March. Do not use decimals in your answer.

Explanation / Answer

Cost of Job #360 = 6300+3300+4000+(4000*125%)= 18600 Cost of Job #361 = 4800+4900+5000+(5000*125%)= 20950 Cost of goods manufactured = 18600+20950= 39550

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