Minstrel Manufacturing Uses a Job Order Costing System

question 82

Multiple Choice

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 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 $15,500 and $27,000 respectively.Compute the cost of jobs transferred to Finished Goods Inventory.

• A)$558,500.
• B)$440,000.
• C)$413,000.
• D)$428,500.
• E)$415,000.

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Definitions:

Carrying Value

The original cost of an asset or liability adjusted for depreciation, amortization, or impairment, reflecting its current book value.

Journal Entry

A record in the accounting ledger that shows a business transaction, involving a debit to one or more accounts and a credit to another to balance.

Consolidated Financial Statements

Financial reports that display the economic condition, operational outcomes, and cash movements of a parent company and its subsidiary companies as one consolidated entity.

Pooling-of-interests Method

A merger accounting method where the assets and liabilities of merging companies are combined using their book values.