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        $3,500        $5,300

COSTS ADDED DURING MARCH:
direct materials ..............    $4,100        $3,000        $6,400
direct labor ..................     5,000         3,900         4,000

Madtack applies overhead to jobs at a rate of 80% of direct materials
used. During March, Madtack completed and sold Job #361. Job #359 was
also completed but was not sold by the end of March. Job #360 was not
completed by the end of March. Madtack's actual overhead cost for the
month of March totaled $11,500.

Calculate Madtack's cost of goods manufactured for March.

Answer 1

Job 361 and 359 are manufactured but not Job 360. Cost of goods manufactured includes only Job 359 and 361.

Particulars	#359	#361	Total
Beginning WIP	$            4,800	$            5,300	$ 10,100
Direct materials	$            4,100	$            6,400	$ 10,500
Direct labor	$            5,000	$            4,000	$    9,000
Overhead @80% of materials	$            3,280	$            5,120	$    8,400
Cost of goods manufactured	$          17,180	$          20,820	$ 38,000

Answer is $38,000.

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