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:

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.

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

B.

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

C.

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

D.

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

E.

More than one of the above statements is correct.

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?