Use the Following Information Regarding Black Company and Red Company

question 218

Multiple Choice

Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2014 (to the closest dollar) ?"

• A) $222,684
• B) $235,125
• C) $224,580
• D) $214,035

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Definitions:

FICA-Social Security

A U.S. government program funded by payroll taxes, providing retirement benefits, disability income, and other services to Americans.

Gross Pay

The total amount of money earned by an employee before any deductions or taxes are taken out.

FUTA Tax

The tax imposed by the Federal Unemployment Tax Act, paid by employers to support state employment agencies.

SUTA Tax

State Unemployment Tax Act tax, which is a state-based tax that employers pay to fund the unemployment benefits for workers who lose their jobs.