If the cost of goods sold for the year was $427,500,what was the cost of goods manufactured for the year?
A)$402,100.
B)$422,300.
C)$417,100.
D)$427,500.
E)some other amount.

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes the cost of raw materials, labor, and overhead incurred in production. Therefore, it is likely to be higher than the cost of goods sold. Since the options A, C, and D are lower than the cost of goods sold, they can be eliminated. Option B is the only one that is higher than the cost of goods sold and thus, is the correct answer.

If the Cost of Goods Sold for the Year Was