At January 1, 2015, Feldstein Manufacturing Had a Beginning Balance

At January 1, 2015, Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred:
Job A-12, was completed for a total cost of $120,000, and was sold for $125,000.
Job A-13, was completed for a total cost of $200,000, and was sold for $210,000.
Job A-15, was completed for a total cost $60,000, but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $12,000, and was cleared to zero at year-end.
What was the amount of gross profit reported by Feldstein at the end of the year?

A) $2,000
B) $27,000
C) $3,000
D) $15,000

Correct Answer:

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