ACC/497 Use the following information for questions 1-3. Caltreck Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2005 Dec. 31, 2006 Raw materials inventory $100,000 $80,000 Work in process inventory 130,000 145,000 Finished goods inventory 125,000 115,000 During 2006, Caltreck purchased $950,000 of raw materials, incurred direct labor costs of $125,000, and incurred manufacturing overhead totaling $160,000. 1. How much is raw materials transferred to production during 2006 for Caltreck Manufacturing? a. $1,240,000 b. $970,000 c. $950,000 d. $930,000 2. How much is total manufacturing costs incurred during 2006 for Caltreck? a. $1,240,000 b. $1,255,000 c. $1,235,000 d. $1,250,000 3. Assume Caltreck Manufacturing's cost of goods manufactured for 2006 amounted to $1,200,000. How much would it report as cost of goods sold for the year? a. $1,210,000 b. $1,250,000 c. $1,325,000 d. $1,190,000