The accounting records of Omar Corporation contained the following information for last year: The total costs added to Work in Process during the year were:
A) $206,000
B) $162,000
C) $176,000
D) $182,000

Question

The accounting records of Omar Corporation contained the following information for last year:  The total costs added to Work in Process during the year were:
A) $206,000 
B) $162,000 
C) $176,000 
D) $182,000

Quizplus · Accepted Answer

To calculate the total costs added to Work in Process during the year, we need to add the beginning balance of Work in Process, the total manufacturing costs (direct materials, direct labor, and manufacturing overhead), and subtract the ending balance of Work in Process.

Beginning balance of Work in Process: $38,000 
Direct materials used: $44,000 
Direct labor: $54,000 
Manufacturing overhead: $40,000 
Ending balance of Work in Process: $10,000

Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead = $44,000 + $54,000 + $40,000 = $138,000

Total costs added to Work in Process = Beginning balance of Work in Process + Total manufacturing costs - Ending balance of Work in Process = $38,000 + $138,000 - $10,000 = $176,000

Therefore, the correct answer is C: $176,000.

The Accounting Records of Omar Corporation Contained the Following Information