Reference no: EM132494800

Holdaway Co., a manufacturer, had inventories at the beginning and end of its current year as follows:

                                                              Beginning                              ENDING

Raw materials .............................             $11,000                          $15,000

Work in process ...........................             20,000                            24,000

Finished goods ............................                   12,500                        9,000

During the year, the following costs and expenses were incurred:

Raw materials purchased ...............................         $150,000

Direct labor cost .....................................                 60,000

Indirect factory labor ................................               30,000

Taxes and depreciation on factory building ............       10,000

Taxes and depreciation on sales room and office .......       7,500

Sales salaries ........................................                   20,000

Office salaries .......................................                    12,000

Utilities (60% applicable to factory, 20% to sales room,

and 20% to office) ....................................                   25,000

Question 1: What Holdaway's cost of goods sold for the year is

A) $257,000.

B) $260,500.

C) $261,000.

D) $269,500.