The Following Information Relates to the Operations of Cruz Manufacturing

question 40

Multiple Choice

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

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

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Definitions:

International Financial Investments

Cross-border investment activities by individuals, companies, or governments aiming to benefit from returns offered in foreign markets.

Exchange Rate

The value of one currency expressed in terms of another currency, used in international trade and investment transactions.

Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type.

Fixed Exchange Rate System

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a valuable commodity like gold.