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 Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount in the finished goods inventory at the beginning of the year?

A.

$10,500.

B.

$15,000.

C.

$20,000.

D.

$25,000.