Problem - 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
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