The CFO of Stoffer Corporation has provided the following data for October. The beginning balance in the raw materials inventory account was $39,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of the month, the balance in the raw materials inventory account was $28,000. Direct labor cost was $29,000 and manufacturing overhead was $78,000. The beginning balance in the work in process account was $11,000 and the ending balance was $13,000. The beginning balance in the finished goods account was $37,000 and the ending balance was $47,000. Sales totalled $240,000. Selling expense was $21,000 and administrative expense was $27,000.

1. The cost of goods sold for October was:

A. $194,000

B. $230,000

C. $128,000

D. $174,000

2. The net operating income for October was:

A. $85,000

B. $18,000

C. $17,000

D.$66,000