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: 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 $8,500. Calculate Madtack's cost of goods sold after the overhead variance is closed for March. Do not use decimals in your answer.

Explanation / Answer

Beg Balance $14,600

DM $13,800

DL $12,000

MOH applied (12000*70/100) = $9,660

Actual MOH = $8,500

Total Mfg Cost = $48,900

Transferred to Finished Goods

Job 360 (6300+4100+3000+(4100*70/100) = $16,270

Job 361 (3500+6400+4000+(6400*70/100)= $18,380

Total Trnfsto Finished Goods= $34,650

Cost of goods sold after OH = $34,650

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