Crespin Brothers Equipment Company began two jobs during March 2004. At the beginning of March, Job 303 was the only job in work-in-process inventory. There was no finished goods inventory. The cost in beginning work-in-process inventory for Job 303 consisted of \($5,450\) in direct material cost, \($8,825\) in direct labor cost, and manufacturing overhead cost of \($7,354\). The following information is available for costs added during March:

Job 303 was completed and sold during March. Job 304 was completed but has yet to be sold, and Job 305 remains in production.
Crespin’s estimated manufacturing overhead for 2004 is \($225,000\), and the company estimates that the labor force will work 18,000 hours during the year. Crespin applies overhead to production based on direct labor hours.

Required:

a. Calculate the cost of the ending work-in-process inventory as of March 31, 2004.

b. Calculate the cost of the finished goods inventory as of March 31, 2004.

c. Calculate the cost of goods sold for March.

Transcribed Image Text:

Direct material Job 303 $4,350 Direct labor $8,400 Direct labor hours 560 Job 304 $12,650 $ 8,125 520 Job 305 $11,300 $ 6,750 480