Rams Company Purchased $34,000 of Direct Materials and Incurred $9,600

Multiple Choice

Rams 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 $2,720 of finished goods at year end. The cost of goods manufactured is:

A) $69,000
B) $50,800
C) $56,840
D) $45,800