The Following Information Relates to the Operations of Cruz Manufacturing

question 128

Multiple Choice

The following information relates to the operations of Cruz Manufacturing during the current year: $\begin{array}{llr} \text { Raw materials used } &\$10,000\\ \text { Direct labor wages } &30,000\\ \text { Sales salaries and commissions } &25,000\\ \text { Depreciation on production equipment } &2,000\\ \text { Rent on manufacturing facilities } &15,000\\ \text {Packaging and shipping supplies } &3,000\\ \text { Sales revenue } &95,000\\ \text {Units produced and sold } &10,000\\ \text { Selling price per unit } &\$10.00\\\end{array}$
Based on this information, what is the company's cost of goods sold? (Do not round intermediate calculations.)

• A) $43,000
• B) $85,000
• C) $57,000
• D) $60,000

---

Definitions:

Contracts

Legally binding agreements between two or more parties that specify and regulate the terms of an engagement, service, or transaction.

Positive Discipline

A disciplinary approach focusing on constructive feedback and encouraging employees to learn from their mistakes without fear of punitive actions.

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its goals efficiently and effectively.