Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.$\begin{array}{lr}
\text { Cost of Goods Sold } & \$ 65,000 \
\text { Work-in-Process Inventory, Beginning } & 10,500 \
\text { Work-in-Process Inventory, Ending } & 9,000 \
\text { Selling and Administrative Expense } & 15,000 \
\text { Finished Goods Inventory, Ending } & 15,000 \
\text { Finished Goods Inventory, Beginning } & ?\
\text { Direct Materials Used } & ? \
\text { Factory Overhead Applied } & 12,000 \
\text { Operating Income } & 14,000 \
\text { Direct Materials Inventory, Beginning } & 11,000 \
\text { Direct Materials Inventory, Ending } & 6,000 \
\text { Cost of Goods Manufactured } & 60,000
\end{array}$Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day.
What is the amount of net sales?
A)$68,500.
B)$94,000.
C)$72,500.
D)$75,000.

Question

Quizplus · Accepted Answer

To find the net sales, we start with the given operating income of $14,000 and add back the selling and administrative expense of $15,000. Operating income is derived from subtracting selling and administrative expenses from gross profit. Therefore, to find net sales, we add the operating income and selling and administrative expenses to the cost of goods sold, which gives us $14,000 + $15,000 + $65,000 = $94,000.

Conrad, Inc Direct Labor Cost Incurred During the Period Amounted to 1