Shoney’s produces Szechuan sauce and had the following beginning and ending inventory balances for the year ended December 31, 2019:

	January 1, 2019	December 31, 2019
Raw Materials	$22,000	$36,000
Work in Process	$17,000	$19,000
Finished Goods	$9,000	$28,000

In addition, direct labor costs of $69,000 were incurred, overhead equaled $21,000, materials purchased were $40,000 and selling and administrative costs were $90,000. Shoney’s sold 25,000 units of product during the year at a sales price of $7.50 per unit. What was the amount of cost of goods sold for the year?

Choose:

a) $95,000

b) $114,000

c) $130,000

d) $116,000

Answer rating: 100% (QA)

Direct materials Beginning raw materials inventory 22000 Add Pur... View the full answer