Leija Manufacturing Company uses a job-order costing system and started the month of March with one job in process (Job #359). This job had $500 of cost assigned to it at this time. During March, Leija assigned production costs as follows to the jobs worked on during the month: During March, Leija completed and sold Job #359. Job #360 was also completed but was not sold by month end. Job #361 was not completed by the end of March.
-What is Leija's cost of goods manufactured for March?

Question

Leija Manufacturing Company uses a job-order costing system and started the month of March with one job in process (Job #359). This job had $500 of cost assigned to it at this time. During March, Leija assigned production costs as follows to the jobs worked on during the month:     During March, Leija completed and sold Job #359. Job #360 was also completed but was not sold by month end. Job #361 was not completed by the end of March. 
-What is Leija's cost of goods manufactured for March?

Quizplus · Accepted Answer

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead applied + Beginning work in process inventory- Ending work in process inventory
In this case,the sum of direct materials,direct labor,and manufacturing overhead applied equals the sum of the costs assigned to the jobs during the month,which is $16,500 (= $6,000 + $8,100 + $2,400).
The ending work in process inventory consists of the cost of Job #361,which was started but not completed during the month.The other two jobs were completed during the month and therefore are not part of the ending work in process inventory.
Cost of goods manufactured = $16,500 + $500 - $2,400 = $14,600

Leija Manufacturing Company Uses a Job-Order Costing System and Started