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