Nicolas Corporation reported the following actual cost data for the month of January:

Inventories:	Beginning	Ending
Raw materials	30,000	26,000
Work-in-process	18,000	19,000
Finished goods	42,000	37,000
Additional information:
Sales		250,000
Raw materials purchases		66,000
Direct labor cost		32,000
Manufacturing overhead		74,000
Selling expense		20,000
Administrative expense		45,000

1. The net operating income for January was:

a. 5,000

b. 79,000

c. 13,000

d. 70,000