Tierney Construction, Incorporated 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	$ 87,500
Work in process inventory, January 1, 2021	21,500
Work in process inventory, December 31, 2021	17,000
Selling and Administrative Expenses	20,000
Net Income	35,000
Factory overhead	21,500
Direct materials inventory, January 1, 2021	28,000
Direct materials inventory, December 31, 2021	15,250
Cost of goods manufactured	106,500
Finished goods inventory, January 1, 2021	35,250

Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The Chief Financial Officer of Tierney Construction, Incorporated has asked you to recalculate the following accounts and to report to him by the end of tomorrow.

What should be the amount in the finished goods inventory at December 31, 2021?

Multiple Choice

• $60,750.

• $40,250.

• $48,250.

• $54,250.

• $56,500.