Reference no: EM132581187

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.

Cost of Goods Sold                                  $65,000

Work-in-Process Inventory, Beginning          10,500

Work-in-Process Inventory, Ending               9,000

Selling and Administrative Expense              15,000

Finished Goods Inventory, Ending                15,000

Finished Goods Inventory, Beginning                  ?

Direct Materials Used                                     ?

Factory Overhead Applied                           12,000

perating Income                                       14,000

Direct Materials Inventory, Beginning            11,000

Direct Materials Inventory, Ending                    6,000

Cost of Goods Manufactured                           60,000

Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day.

Question 1: What is the amount of direct materials purchased?

Option 1: $36,000.

Option 2: $28,500.

Option 3: $31,000.

Option 4: $23,500.