Cromuel Corporation has provided the following data for January. The beginning balance in the raw materials inventory account was $27,000. During the month, the company made raw materials purchases amounting to $50,000. At the end of the month, the balance in the raw materials inventory account was $24,000. Direct labor cost was $53,000 and manufacturing overhead was $70,000. The beginning balance in the work in process account was $14,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $33,000 and the ending balance was $51,000. Sales totalled $270,000. Selling expense was $21,000 and administrative expense was $48,000.
1. The total manufacturing cost for January was:
A. $70,000
B. $123,000
C. $176,000
D. $173,000
2. The net operating income for January was:
A. $41,000
B. $78,000
C. $110,000
D. $28,000