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?

The direct materials used is calculated as difference between amount of direct materials available…

Answered: Conrad, Inc. recently lost a portion of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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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