Cloudy Comfort Company's accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2011 Raw materials inventory $310,000 $260,000 Work in process inventory | 300,000 160,000 Finished goods inventory 190,000 150,000 During 2012, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000. If Cloudy Comfort Company's cost of goods manufactured for 2012 amounted to $1,190,000, its cost of goods sold for the year is: A) $1,300,000. B) $1,050,000. C) $1,150,000. D) $1,230,000.
Cloudy Comfort Company's accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2011 Raw materials inventory $310,000 $260,000 Work in process inventory | 300,000 160,000 Finished goods inventory 190,000 150,000 During 2012, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000. If Cloudy Comfort Company's cost of goods manufactured for 2012 amounted to $1,190,000, its cost of goods sold for the year is: A) $1,300,000. B) $1,050,000. C) $1,150,000. D) $1,230,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cloudy Comfort Company's accounting records reflect the following inventories:
Dec. 31, 2012 Dec. 31, 2011
Raw materials inventory
$310,000
$260,000
Work in process inventory | 300,000
160,000
Finished goods inventory
190,000
150,000
During 2012, $400,000 of raw materials were purchased, direct labor costs amounted to
$500,000, and manufacturing overhead incurred was $480,000. If Cloudy Comfort
Company's cost of goods manufactured for 2012 amounted to $1,190,000, its cost of goods
sold for the year is:
A) $1,300,000.
B) $1,050,000.
C) $1,150,000.
D) $1,230,000.
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