Use the Following Information for Questions
Caltreck Manufacturing Inc

question 47

Multiple Choice

Use the following information for questions
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
$$\begin{array} { l c c c } & \underline{ \text { Dec. 31,2019 } }& \underline{\text { Dec. 31, 2020} } \\\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \\\text { Wark in process irventory } & 130,000 & 145,000 \\\text { Finished goods irventory } & 125,000 & 115,000\end{array}$$ During 2020, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
-Assume Caltreck Manufacturing's cost of goods manufactured for 2020 amounted to $1,200,000.How much would it report as cost of goods sold for the year?

• A)$1,210,000
• B)$1,250,000
• C)$1,325,000
• D)$1,190,000

---

Definitions:

Citrus Fruit

A category of fruits that includes oranges, lemons, limes, and grapefruits, known for their vibrant flavors and high vitamin C content.

Retailer Cooperative

A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion.

Consumer Cooperative

A cooperative business owned by its customers for their mutual benefit, where profits are returned to the members according to their use of the cooperative, not according to the capital invested.

Franchise

A business model where a company allows an individual or other company to operate a branch of their business under their brand and guidelines.