Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
Dec. 31, 2008
Dec. 31, 2009
Raw materials inventory
$100,000
$ 80,000
Work in process inventory
130,000
145,000
Finished goods inventory
125,000
115,000
During 2008, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
Assume Caltreck Manufacturing's cost of goods manufactured for 2008 amounted to $1,200,000. How much would it report as cost of goods sold for the year?