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 Holdaway's cost of goods sold for the year is A) $257,000. B) $260,500. C) $261,000. D) $269,500. Please explain why the answer is correct - showing work and why the other ones are wrong