Jackson ProductsSchedule of Cost of Goods ManufacturedFor 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 labor9,000

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

Deduct ending work-in-process inventory

(7,000)

Cost of goods manufactured (to Income Statement)$111,000

What are Jackson's conversion costs for the year?A.

$29,000

B.

$20,000

C.

$4,000

D.

$98,000