In Its First Year of Operations, a Company Has Sales

Multiple Choice

In its first year of operations, a company has sales of $116,000, ending finished goods inventory of $11,800, variable manufacturing costs of $57,600, and fixed manufacturing costs of $28,000 for the year. Assuming the company uses direct costing, the cost of goods sold for the year is

A) $70,200.
B) $17,800.
C) $45,800.
D) $57,600.