The following information was taken from Kay Company’s accounting records for the year ended December 31, 2012:

Increase in raw materials inventory $15,000

Decrease in finished goods inventory35,000

Raw materials purchased430,000

Direct manufacturing labor payroll200,000

Factory overhead300,000

Freight-out45,000

There was no work in process inventory at the beginning

or end of the year. Kay’s2012 cost of goods sold is

a.950,000

b.965,000

c.975,000

d.995,000