Jackson Products
Schedule of Cost of Goods Manufactured
For the Year Ended December 31 (in thousands)
Direct materials:
Beginning inventory	$17,000
Purchases of direct materials	70,000
Cost of direct materials available for use	$87,000
Ending inventory	(9,000)
Direct materials used		$ 78,000
Direct manufacturing labor		9,000
Indirect manufacturing costs:
Indirect manufacturing labor	$ 8,000
Supplies	1,000
Heat, light, and power	4,000
Depreciation -- plant building	2,000
Depreciation -- plant equipment	3,000
Miscellaneous	2,000	20,000
Manufacturing costs incurred during the period		$107,000
Add: Beginning work-in-process inventory		11,000
Total manufacturing costs to account for		$118,000
Minus: Ending work-in-process inventory		(7,000)
Cost of goods manufactured (to Income Statement)		$111,000

What are Jacksons conversion costs for the year?

a) $4,000

b) $29,000

c) $20,000

d) $98,000