Rams Manufacturing Company Purchased $34,000 of Direct Materials and Incurred

Multiple Choice

Rams Manufacturing Company purchased $34,000 of direct materials and incurred $9,600 of direct labor costs during the year. Indirect labor amounted to $1,000 while indirect materials totaled $1,200. Other operating expenses pertaining to the factory included utilities of $1,280, maintenance of $1,840, supplies of $720, depreciation of $6,040, and property taxes of $1,160. The only inventory was $5,000 of finished goods at year end. The cost of goods sold is:

A) $51,840
B) $61,840
C) $38,600
D) $56,840