Problem - The following data should be used for the question(s) below:
Raw materials inventory, January 1 - $12,000
Raw materials inventory, December 31 - 16,000
Work in process, January 1 - 5,000
Work in process, December 31 - 8,000
Finished goods, January 1 - 17,000
Finished goods, December 31 - 12,000
Raw materials purchases - 118,000
Direct labor - 165,000
Factory utilities - 64,000
Indirect labor - 12,000
Factory depreciation - 18,000
Selling and administrative expenses - 220,000
Assume manufacturing costs is $400,000. How much is cost of goods manufactured?
A) $400,000
B) $389,000
C) $397,000
D) $403,000