Question

THE Company provided the following information
for February:

                   February 1     February 28
Work in process     $61,000        $43,000
Finished goods      $72,000        $88,000

Sales revenue ...........  $449,000
Direct labor ............  $331,000 
Gross profit ............  $ 84,000

THE Company's cost of goods manufactured for
February was equal to:

Group of answer choices

$399,000

$381,000

$465,000

$349,000

$363,000

$431,000

none of the above choices are correct

Answer 1

Ans.	Option 2nd $381,000
	WORKING NOTES :
	*Calculations for Cost of goods sold :
	Sales revenue	$449,000
	Less: Gross profit	-$84,000
	Cost of goods sold	$365,000
	*Calculations for cost of goods available for sale :
	Cost of goods sold	$365,000
	Add: Ending finished goods inventory	$88,000
	Cost of goods available for sale	$453,000
	*Calculations for cost of goods manufactured :
	Cost of goods available for sale	$453,000
	Less: Beginning finished goods inventory	-$72,000
	Cost of Goods Manufactured	$381,000