Preparing basic financial statements

The following information is relevant to Wimbledon:

$

D

Opening inventory

12,500

Closing inventory

17,900

Purchases

199,000

Distribution costs

35,600

Administrative expenses

78,800

Audit fee

15,200

Carriage in

3,500

Carriage out

7,700

Depreciation

40,000

Depreciation is to be split in the ratio 70:30 between the factory and the office. All office expenses are classified as administrative expenses.
Based upon the available information, what was Wimbledon’s cost of sales?
$233,600
$221,600
$225,100
$237,100

Why 70% depreciation is added in cost of sales as it is an operating expense