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 sold for March after the overhead
variance is closed.

Answer 1