Conrad, Inc Direct Labor Cost Incurred During the Period Amounted to 1

question 87

Multiple Choice

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. $\begin{array}{lr}\text { Cost of Goods Sold } & \$ 65,000 \\\text { Work-in-Process Inventory, Beginning } & 10,500 \\\text { Work-in-Process Inventory, Ending } & 9,000 \\\text { Selling and Administrative Expense } & 15,000 \\\text { Finished Goods Inventory, Ending } & 15,000 \\\text { Finished Goods Inventory, Beginning } & ?\\\text { Direct Materials Used } & ? \\\text { Factory Overhead Applied } & 12,000 \\\text { Operating Income } & 14,000 \\\text { Direct Materials Inventory, Beginning } & 11,000 \\\text { Direct Materials Inventory, Ending } & 6,000 \\\text { Cost of Goods Manufactured } & 60,000\end{array}$ Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day.
What is the amount of direct materials purchased?

• A)$23,500.
• B)$28,500.
• C)$31,000.
• D)$36,000.

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Definitions:

Participant Observation

A qualitative research method involving the researcher immersing themselves in a group or community to observe behaviors and interactions firsthand.

Researcher Reactivity

A phenomenon where the presence or behavior of the researcher influences the subjects' behavior, potentially biasing the study results.

Hawthorne Effect

A phenomenon where individuals alter their behavior due to their awareness of being observed as part of a study.