Snack Smart, Inc., is a manufacturer of prepacked snack food for the health conscious consumer. The companys raw materials inventory only contains direct materials. During the year, the company purchased and used $13,500 of direct materials. In addition, the company incurred the following manufacturing costs:

direct labor	$15,000
rent	$8,000
depreciation	$4,500
utilities	$6,000
indirect labor	$5,000
indirect materials	$500

On the companys cost of goods sold scheduled prepared at year end, the cost of goods manufactured for the year was $22,000 and there was a net increase of $2,250 in finished goods inventory.

Which of the following statements is correct assuming the company uses an actual costing system to account for manufacturing overhead?

A.

To calculate gross profit, $24,250 would be subtracted from sales revenue.

B.

Total actual manufacturing overhead costs for the year were $39,000.

C.

The net decrease in work in process inventory during the period was $30,500.

D.

The beginning raw materials inventory equaled the ending raw materials inventory.

E.

More than one of the above statements is correct.