of $197000 of which $30,600 were indirect Minstrel incurred a factory payroll of

Question

of $197000 of which $30,600 were indirect Minstrel incurred a factory payroll of $151200, of which $40,600 was indirect labor. Minstrel uses a overhead application ,ate of 150% of drect labor cost Minstrol's beginning and endng Wok n Process Inventory are S15700 and S22400 Minstrel Manufacturing uses a job order costing system During one month, Minstrel purchased $200.400 of raw materials on credit, issued materials to 43 respectively Compute the cost of product transferred to Finished Goods cost of product transfermed to Finished Goods Inventony ponts Mutiple Choice $564.300 5417200

Explanation / Answer

QUEATION 43:

Answer : The cost of products transferred to finished goods inventory is the 4th choice i.e= $ 431200

Working Notes for the above solution:

Accounts payable200,400$

Manufactg overhead30600$

Raw materials197000$

      ( c) Work in process     110600 $

                Manufg overheads 40600$

                         Salary and Wages         151200 $

     ( d) Work in process 165900$

                 Manufacturg overheads 165900$

Work in process

     Op wip 15700$                   Finished Goods 431200 $

Closing wip 27400$

QUESTION 45:

Direct Material cost incurred for producing the inventory was option 4 i.e 40,000 $

Given overheads applied was = 77000$

And overhead rate is 110 % of direct labour , Therefore direct labour =77000*100/110=70,000$

Direct material= Finished goods-( labour cost+ overhead cost)

             = 187000-(70,000+77,000)

            =40,000 $

       

              

   

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