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 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000
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 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | ||
| Operating 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 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?
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