The accounting records of Omar Company contained the following information for last year:
|
Beginning |
Ending |
|
|
Direct materials inventory |
$9,000 |
$7,000 |
|
Work in process inventory |
$17,000 |
$31,000 |
|
Finished goods inventory |
$10,000 |
$15,000 |
|
Manufacturing costs incurred |
||
|
Direct materials used |
$72,000 |
|
|
Overhead applied |
$24,000 |
|
|
Direct labor cost (10,000 hours) |
$80,000 |
|
|
Depreciation |
$10,000 |
|
|
Rent |
$12,000 |
|
|
Taxes |
$8,000 |
|
|
Cost of goods sold |
$157,000* |
|
|
Selling and administrative costs incurred |
||
|
Advertising |
$35,000 |
|
|
Rent |
$20,000 |
|
|
Clerical |
$25,000 |
|
The cost of goods manufactured for the year was:
A) $190,000
B) $162,000
C) $168,000
D) $135,000