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

Ending WIP is equl to cost of unfinished jobs 359 beginning WIp+cost incurred during the year.

Cost of goods manufactured Beginning WIP   [3500+6300+4800] 14600 Manufacturing cost incurred during the year Direct material [4600+3300+4900] 12800 Direct labor   [3000+4000+5000] 12000 overhead [12000*125%] 15000 39800 less:ending WIP [3500+4600+3000+(3000*125%)] -14850 COst of goods manufactured 39550

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