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