Wasson Company Reported the Following Year-End Information How Much Is Wasson's Total Cost of Work in Process

question 43

Multiple Choice

Wasson Company reported the following year-end information: $$\begin{array} { l r } \text { Beginning work in process inventory } & 35,000 \\\text { Beginning raw materials inventory } & 18,000 \\\text { Ending work in process inventory } & 38,000 \\\text { Ending raw materials inventory } & 15,000 \\\text { Raw materials purchased } & 560,000 \\\text { Direct labor } & 210,000 \\\text { Manufacturing overhead } & 120,000\end{array}$$ How much is Wasson's total cost of work in process for the year?

• A) $925,000
• B) $893,000
• C) $890,000
• D) $928,000

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Definitions:

Engineers

Professionals who apply scientific knowledge, mathematics, and ingenuity to develop solutions for technical, societal, and commercial problems.

Standard Prices

Predetermined prices used in budgeting and cost control procedures for valuing transactions and measuring cost variances.

Direct Materials Quantity Variances

The variance that occurs when the actual quantity of materials used in production differs from the expected quantity.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.