Biology Forums - Study Force

The accounting records of Omar Corporation 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
Unadjusted cost of goods sold (does not include overapplied or underapplied overhead)	$157,000

	Selling, General, and Administrative Costs Incurred
Advertising	$35,000
Rent	$20,000
Clerical	$25,000

The amount of direct material purchased during the year was:

▸ $66,000

▸ $70,000

▸ $65,000

▸ $74,000

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