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 product transferred to Finished Goods Inventory:

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


D) $428,500.
Explanation: $165,000 + $110,000 + ($110,000 * 1.5) + 15,500 - $27,000 = $428,500

Business

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