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.What was the cost of goods manufactured for the first quarter?

A) $375,000.
B) $350,000.
C) $400,000.
D) $385,000.= (700,000 - 325,000) + 85,000 - 60,000 = $400,000.