The Following Information Relates to the Operations of Cruz Manufacturing

question 38

Multiple Choice

The following information relates to the operations of Cruz Manufacturing during the current year: $\begin{array}{lrr} \text { Raw materials used } &\$20,000\\ \text { Direct labor wages } &60,000\\ \text {Sales salaries and commissions } &50,000\\ \text { Depreciation on production equipment} &4,000\\ \text { Rent on manufacturing facilities } &30,000\\ \text {Packaging and shipping supplies } &6,000\\ \text { Sales revenue} &190,000\\ \text { Units produced and sold} &10,000\\ \text { Selling price per unit } &\$20.00\\\end{array}$
Based on this information,what is the company's cost of goods sold?

• A) $86,000
• B) $120,000
• C) $114,000
• D) $170,000

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Definitions:

Par Value

A nominal value assigned to shares of stock by the issuing company, which is the minimum price at which shares can be issued, often used for legal capital purposes.

Annual Dividend

The total dividend payment a company distributes to its shareholders in a fiscal year.

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid in a given year and must be paid out before dividends can be distributed to common stockholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.