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 ..... $4,800 $6,300 $3,500 COSTS ADDED DURING MARCH direct materials .............. $6,400 $3,300 $4,100 direct labor .................. 3,000 4,000 5,000 Madtack applies overhead to jobs using a pre-determined overhead rate of 120% of direct labor cost. Madtack calculated its work in process at March 31 to be $17,800 and its cost of goods sold for March to be $18,400. Which job(s) were sold by Madtack during March?

Explanation / Answer

Answer:

As the cost of goods sold for march = $18,400, it means the Job no. 360 is sold (ans)

Job no. 359 is in WIP - $17,800

Job no. 361 in Finished stock = $18,600

Jobs nos 359 360 361 X Beginning WIP 4800 6300 3500 Add: Cost added during march: Direct materials 6400 3300 4100 Direct Labors 3000 4000 5000 Overhead = D labor*120% 3600 4800 6000 Y Total added 13000 12100 15100 X+Y Total Cost of Jobs 17800 18400 18600

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