Example 4:

The following information was taken from the accounting records of Henry Manufacturing Company:

Direct materials purchased$75,000

Direct materials used$56,000

Direct manufacturing labor costs$20,000

Indirect manufacturing labor costs$10,000

Sales Salaries Expense$35,000

Miscellaneous Factory Expenses$5,000

Administrative Expenses$40,000

Finished Goods Inventory, beginning$10,000

Finished Goods Inventory, end$12,000

Work-In-Process Inventory, beginning0

Work-In-Process Inventory, end0

What is Cost of Goods Manufactured?

A) $86,000

B) $89,000

C) $91,000

D) $96,000