Minstrel manufacturing uses a job order costing system. During one month, minstrel purchased $206,000 of raw materials on credit; issued materials to production of $203,000 of which $22,000 were indirect. Minstrel incurred a factory payroll of $158,000, of which $32,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are:

The total manufacturing costs added during the period are:  $550,000.

Explanation:

To determine the  total manufacturing costs added during the period, prepared a manufacturing cost schedule as follows :

manufacturing cost schedule

Direct Raw Materials ($203,000 - $22,000)         $181,000

Direct Labor ($158,000 - $32,000)                       $126,000

Indirect Materials                                                     $22,000

Indirect Labor                                                           $32,000

Overhead costs ($126,000 × 150%)                      $189,000

Total Manufacturing Costs                                   $550,000

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