For the Year Just Ended, Porter Corporation's Manufacturing Costs (Raw

question 109

Multiple Choice

For the year just ended, Porter Corporation's manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. Porter's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (CGM) and cost of goods sold (CGS) ?

• A) CGM, $1,430,000; CGS, $1,460,000.
• B) CGM, $1,470,000; CGS, $1,540,000.
• C) CGM, $1,530,000; CGS, $1,460,000.
• D) CGM, $1,570,000; CGS, $1,540,000.
• E) Some other amounts.

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