Minstrel manufacturing uses a job order costing system. during one month, minstrel purchased $225,600 of raw materials on credit; issued materials to production of $218,000 of which $36,900 were indirect. minstrel incurred a factory payroll of $163,800, of which $46,900 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 $17,800 and $31,600 respectively. compute the cost of product transferred to finished goods inventory:

The cost of product transferred to Finished Goods Inventory is $459,550

Explanation:

The computation of the cost of product transferred to Finished Goods Inventory is shown below:

= Beginning Work in Process Inventory + issued of raw materials - indirect material + factory payroll - indirect labor + overhead cost - ending Work in Process Inventory

= $17,800 +  $218,000 -  $36,900 + $163,800 -  $46,900  + $175,350 - $31,600

= $459,550

The overhead cost is computed below:

= (Factory payroll - indirect labor) × percentage of direct labor

= ($163,800 -  $46,900) × 150%

= $175,350

the answer is d

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