Minstrel Manufacturing uses a job order costing system. During one month Minstre
ID: 2459799 • Letter: M
Question
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $205,200 of raw materials on credit; issued materials to production of $201,000 of which $31,800 were indirect. Minstrel incurred a factory payroll of $153,600, paid in cash, of which $41,800 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $16,100 and $28,200 respectively. Compute the cost of product transferred to Finished Goods Inventory: $453,800. $575,900. $436,600. $427,600. $425,600.
Explanation / Answer
Direct materials $ 169,200 201000-31800 Direct labor $ 111,800 153600-41800 Overheads applied $ 167,700 111800*150% Opening WIP $ 16,100 Closing WIP $ (28,200) Cost of products trasnferred to finished goods inventory $ 436,600