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 ..............    $3,300        $4,100        $4,600
direct labor ..................     5,000         3,000         4,000

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 $9,500.

Calculate Madtack's cost of goods sold for March after the overhead variance
is closed.

Answer 1