Beginning Raw Materials Inventory 375000 435000 Ending Raw M

Beginning Raw Materials Inventory $375,000 $435,000 Ending Raw Materials Inventory Direct Factory Labor Indirect Factory Labor Factory Utilities Selling, General, and Administrative Expenses $125,000 Building Depreciation\' 70% of the building is devoted to production, 30% of the building is devoted to selling and administrative functions. $185,000 $ 35,000 $44,000 $300,000

Solution

The answer is \"C\"

C. $613002

Solution :-

Particulars	Amount($)	Amount($)	Amount($)
Sales Revenue			1457559
Raw Materials Used :-
Beginning Raw Material Inventory	375000
Add : Raw Materials Purchased	453283
Less : Ending Raw Material Inventory	(435000)
Raw Materials Used		393283
Direct Labor		185000
Manufacturing Overhead :-
Factory Utilities	44000
Indirect Factory Labor	35000
Depreciation on Factory Building(70%)	210000
Manufacturing Overhead		289000
Total Manufacturing Costs		867283
Increase in WIP Inventories(Beginning WIP - Ending WIP)		(47726)
Cost of Goods Manufactured		819557
Add: Beginning Finished Goods Inventory		475000
Less : Ending Finished Goods Inventory		(450000)
Cost of Goods Sold			844557
Gross Profit ($1457559 - $844557)			613002