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Question - Weston Company began operations in 2021. During the year, the company worked on three jobs. Information related to these three jobs is given below:
Job #1
Job #2
Job #3
Direct materials
$40,300
$63,900
$22,600
Direct labor cost
$53,500
$78,400
$34,600
By the end of the year, Job #1 and Job #2 were completed. Job #3 was not completed by the end of 2021. Additionally, by the end of 2021, Job #2 had been sold. Job #1 was not sold by the end of 2021.
Overhead is applied to jobs using a pre-determined rate of 80% of direct labor cost. The actual overhead cost incurred during 2021 amounted to $142,740.
Required - Calculate the amount of cost of goods sold reported in the 2021 income statement after the overhead variance has been closed.
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