Selected Data Concerning the Past Year’s Operations of the Karl

Multiple Choice

Selected data concerning the past year’s operations of the Karl Enterprises are as follows:
$\begin{array}{lr}\text { Selling and administrative expenses } & \$ 75,000 \\\text { Direct materials used } & 265,000 \\\text { Direct labour (25,000 hours) } & 300,000 \\\text { Factory overhead application rate } & 16 \text { per DLH }\end{array}$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{crr}&\text { Beginning}&\text { Ending}\\\text { Direct materials } & \$ 50,000 & \$ 45,000 \\\text { Work in process } & 75,000 & 90,000 \\\text { Finished goods } & 40,000 & 25,000\end{array}$
-Refer to the figure.What is the cost of goods sold?

A) $565,000
B) $950,000
C) $965,000
D) $980,000