COST OF GOODS SOLD

Fife and Drum Corp uses a process costing system with two processing departments: Production and Finishing Departments. Work in process inventories are reduced to zero each month. In October, the Production Department incurred manufacturing costs of $18,000 to produce 3,000 components used to create instruments. The Finishing Department incurred manufacturing costs of $28,000. A total of 1,600 instruments were transferred to the finished goods warehouse during the month. Fife and Drum sold 900 instruments in the month of October for $40,500. What was the cost of goods sold for that month? a. $15,750 b. $46,000 c. $21,150 d. $25,875