The Gross Margin for Cushing Company for the First Quarter

Multiple Choice

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000. The beginning inventory of finished goods was $60,000 and the ending inventory of finished goods was $85,000. The cost of goods manufactured for the first quarter would have been:

A) $350,000.
B) $485,000.
C) $375,000.
D) $400,000.