Question
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost of Goods Sold $81,600 Work-in-Process Inventory, January 1, 2017 $18,800 Work-in-Process Inventory, December 31, 2017 $14,100 Selling and Administrative Expense $16,600 Net Income $30,500 Factory overhead $19,400 Direct materials inventory, January 1, 2017 $24,900 Direct materials inventory, December 31, 2017 $14,600 Cost of goods manufactured $98,600 Finished goods inventory, January 1, 2017 $30,500 Direct labor cost incurred during the period amounted to 2.6 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount of direct materials purchased? $129,100 $93,900 $13,760 $24,060
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