Calculate the Cost of Goods Sold Using the Following Information

question 177

Multiple Choice

Calculate the cost of goods sold using the following information: $\begin{array}{lr}\text { Direct materials used } & \$ 298,500 \\\text { Direct labor used } & 132,000 \\\text { Factory overhead costs } & 264,000 \\\text { General and administrative expenses } & 85,500 \\\text { Selling expenses } & 48,800 \\\text { Work in Process inventory, January 1 } & 118,500 \\\text { Work in Process inventory, December 31 } & 125,900 \\\text { Finished goods inventory, January 1 } & 232,100 \\\text { Finished goods inventory, December 31 } & 238,700\end{array}$

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

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Definitions:

Normal Probability Distribution

A bell-shaped curve that is symmetric about the mean, describing how the values of a variable are distributed, indicating most data falls close to the mean.

Sampling Distribution

The probability distribution of a given random-sample-based statistic.

Sample Sizes

Refers to the different quantities or numbers of observations collected from populations for various studies.

Standard Error

A measure of the statistical accuracy of an estimate, computed from the standard deviation of the sampling distribution of a statistic.