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?

• A)$15,000.
• B)$29,000.
• C)$20,000.
• D)$24,000.

---

Definitions:

Sustainable Development

The practice of meeting current societal needs without compromising the ability of future generations to meet their own, integrating economic, environmental, and social considerations.

Mortality

The state of being subject to death; often used to describe the rate of death within a population.

The Lancet

A prestigious international peer-reviewed medical journal known for publishing significant medical research findings.

Controversial Study

A research project that generates debate and disagreement due to its subject matter, methodology, or findings.