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: a. $453,800. b. $575,900. c. $436,600. d. $427,600. e. $425,600.

c. $436,600

Explanation:

Direct materials to production = $201,000 - $31,800  = $169,200

Direct factory payroll = $153,600 - $41,800 = $111,800

Minstrel uses a predetermined overhead application rate of 150% of direct labor cost, then overhead = 150% * $111,800 = $167,700

Cost of product produced in one month = direct materials to production of $169,200 +a direct factory payroll of $111,800 + overhead $167,700 = $448,700

The cost of product transferred to Finished Goods Inventory = Cost of product produced in one month + Beginning WIP Inventory - Ending WIP Inventory

= $448,700 + $16,100 - $28,200 = $436,600

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know