A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s) are true?

Select one:

a. The company will recognize sales on the balance sheet of $150,000.

b. The company will recognize $90,000 gross profit on the balance sheet.

c. The company will decrease finished goods by $60,000.

d. All of these are true.

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was:

Select one:

a. $218,000

b. $226,000

c. $190,000

d. $222,000