Answer:
$649,450
Explanation:
Total cost incurred in the year = Materials + Labor + Overheads
= $64,750 + $198,400 + $394,800 = $657,950
Now costs of goods manufactured = Opening Work in process + Manufacturing expenses for the year - Closing work in process
= $189,100 + $657,950 - $197,600 = $649,450
Reason for above is - cost of goods manufactured means cost for completed goods, opening work in process would be completed during the year and cost incurred during the year is also for completed units except that incurred on closing work in process as it is incomplete.
Correct option is b) $649,450
