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Tierney Construction, Inc Direct Labor Cost Incurred During the Period Amounted to 2

question 65

Multiple Choice

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: $\begin{array}{lr}\text { Cost of goods sold } & \$ 80,000 \\\text { Work in process inventory, January 1, 2016 } & 18,500 \\\text { Work in process inventory, December 31, 2016 } & 14,500 \\\text { Selling and Administrative Expenses } & 16,000 \\\text { Net Income } & 30,000\\\text { Factory overhead } & 20,000 \\\text { Direct materials inventory, January 1, 2016 } & 26,000 \\\text { Direct materials inventory, December 31, 2016 } & 14,000 \\\text { Cost of goods manufactured } & 98,000 \\\text { Finished goods inventory, January 1, 2016 } & 31,000\end{array}$ Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount of direct materials used?

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Definitions:

Phonemes

Phonemes are the smallest units of sound in a language that can distinguish one word from another in the language's phonological system.

Benjamin Whorf

An American linguist known for his hypothesis that the structure of a language affects its speakers' cognition and worldview.

Allen Gardner

An American psychologist known for his work in teaching sign language to chimpanzees, notably a chimp named Washoe.

Beatrix Gardner

A psychologist known for her work with sign language in non-human primates, particularly with a chimpanzee named Washoe.