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
*Does not include over- or underapplied overhead.
1.
The...