Snack Smart, Inc., is a manufacturer of prepacked snack food for the health conscious consumer. The company's raw materials inventory only contains direct materials. During the year, the company purchased $13,500 of direct materials. The ending raw materials inventory balance was $2,000 higher than the beginning raw materials inventory balance. The company incurred the following additional factory costs: rent depreciation utilities indirect labor indirect materials $4,000 $4,500 $2,500 $3,100 $250 On the company's cost of goods sold scheduled prepared at year end, the cost of goods manufactured for the year was $25,000 and there was a net decrease of $2,250 in finished goods inventory. Which of the following statements is incorrect assuming the company uses an actual costing system to account for manufacturing overhead, and direct laborers were paid $7,500 during the year? A. The beginning finished goods inventory was $2,250 higher than the ending finished goods inventory. B. Total actual manufacturing overhead costs for the year were $14,350. C. To calculate gross profit, $27,250 would be subtracted from sales revenue. D. The net increase in work in process inventory during the year was $8,350. E. Direct materials used during the year equaled $11,250.