Answer (B) is correct . This solution requires a series of computations. Total manufacturing cost is the sum of direct materials cost, direct labor cost, and manufacturing overhead. Beginning materials $67,000 Add: purchases 163,000 Add: transportation in 4,000 Less: purchase returns (2,000) Materials available $232,000 Less: ending materials (62,000) Materials used in production $170,000

Madtack Company’s cost of goods manufacturing is 145000+170000+200000*1.7-171000=484000  cost of goods sold is 484000+85000-78000=491000

Answer (A) is incorrect because The amount of $484,000 is the cost of goods manufactured.
Answer (C) is incorrect because The amount of $502,000 is based on cost of goods manufactured of $495,000.
Answer (D) is incorrect because The amount of $476,000 is based on actual overhead costs and fails to adjust for the change in finished goods inventories.