Samo Co. incurred various costs during the quarter including raw materials, wages, depreciation, and manufacturing overhead. The document asks how much of these costs would be recorded in Samo's Work in Process Inventory account. The costs that would be recorded are raw materials, wages of factory workers, depreciation on factory and production equipment, and manufacturing overhead, totaling $247,000.

1. Samo Co. incurred the following costs during the quarter:
How much of these costs would have been recorded in Samo's Work in Process Inventory
account during the quarter?
$247,000
$279,000
$195,000
$188,000
$552,000
Raw materials used in production $32,000
Marketing materials used by sales staff $14,000
Wages of factory workers $91,000
Salaries of sales staff $291,000
Depreciation on factory and production equipment $52,000
Depreciation on headquarters building $32,000
Manufacturing overhead $72,000
Solution
Costs would have been recorded in Samo's Work in Process Inventory account = Raw materials
used in production + Wages of factory workers + Depreciation on factory and production
equipment + Manufacturing overhead
Costs would have been recorded in Samo's Work in Process Inventory account = 32000 +
91000+ 52000+ 72000
Costs would have been recorded in Samo's Work in Process Inventory account = $247000

2. Note : Assuming Manufacturing overhead does not include Depreciation on factory and
production equipment