Calculate the Cost of Goods Sold Using the Following Information

question 225

Multiple Choice

Calculate the cost of goods sold using the following information: $\begin{array} { l c } \text { Direct materials } & \$ 298,500 \\\text { Direct labor } & 132,000 \\\text { Factory overhead costs } & 264,000 \\\text { General and administrative expenses } & 85,500 \\\text { Selling expenses } & 48,800 \\\text { Work in Process inventory, January } & 1118,500 \\\text { Work in Process inventory, December 31 } & 125,900 \\\text { Finished goods inventory, January 1 } & 232,100 \\\text { Finished goods inventory, December 31 } & 238,700\end{array}$

• A) $701,900.
• B) $680,500.
• C) $772,600.
• D) $674,600.
• E) $687,100.

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Definitions:

Domestic Producers

Firms or individuals that manufacture or produce goods and services within a country's borders.

Subsidies

Financial assistance granted by the government to individuals, organizations, or industries to support business activities and encourage economic growth.

Special Taxes

Levies imposed on specific goods, services, or activities, often with the intention of discouraging usage or generating revenue for targeted purposes, distinct from broad-based taxes like income tax.

Tariff

A tax imposed by a government on imports or exports of goods and services.