During its first year of operations, Brown Company incurred the following product costs:

Direct materials used in production $200,000;

Direct labor $175,000; and

Manufacturing overhead $145,500.

The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?

a. $375,000

b. $200,000

c. $485,500

d. $520,500

2. Within the relevant range, fixed costs:

a. Remain steady when sales volume changes.

b. Rise as sales volume rises.

c. Fall as sales volume falls.

d. Rise as sales volume falls.

Answer rating: 100% (QA)

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