Holdaway Co., a manufacturer, had inventories at the beginning and ends of its current year as follows:   Beginning End Raw Materials 11,000 15,000 Work In Process 20,000 24,000 Finished Goods 12,50

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  1. Holdaway Co., a manufacturer, had inventories at the beginning and ends of its current year as follows:

 

Beginning

End

Raw Materials

11,000

15,000

Work In Process

20,000

24,000

Finished Goods

12,500

9,000

 

During the year, the following costs and expenses were incurred:

Raw materials purchased                                                                            150,000

Direct labor cost                                                                                            60,000

Indirect Factory Labor                                                                                 30,000

Taxes and Depreciation

On Factory Building                                                          10,000

Taxes and Depreciation on

sales Room and Office                                                         7,500                                                                                                         

Sales Salaries                                                                      20,000

Office Salaries                                                                      12,000

utilities (60% applicable to factory,

20% to sales room, and 20% to office)                                25,000

 

Holdaway’s cost of goods sold for the year is

a.257,000      b. 260,500            c. 261,000          d. 269,500

 

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