For calendar 2020, the gross profit of Seymour Corp. was $135,000; the cost of goods manufactured was $360,000; the beginning inventories of goods in process and finished goods were $33,500 and $57,000, respectively; and the ending inventories of goods in process and finished goods were $44,000 and $71,000, respectively. Allan Corp.'s sales for 2020 must have been

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To find Allan Corp.'s sales for 2020, we first calculate the cost of goods sold (COGS). COGS is calculated as: Beginning Inventory + Cost of Goods Manufactured - Ending Inventory. For both goods in process and finished goods, we have:- Goods in Process: Beginning Inventory ($33,500) + Cost of Goods Manufactured ($360,000) - Ending Inventory ($44,000) = $349,500 for goods in process, but this figure is not directly used in COGS for sales, it's part of the manufacturing process.- Finished Goods: Beginning Inventory ($57,000) + Cost of Goods Manufactured ($360,000) - Ending Inventory ($71,000) = $346,000.However, the correct way to calculate COGS for sales is: Beginning Inventory of Finished Goods + Cost of Goods Manufactured - Ending Inventory of Finished Goods. So, it should be:$$ \text{COGS} = (\text{Beginning Inventory of Finished Goods} + \text{Cost of Goods Manufactured}) - \text{Ending Inventory of Finished Goods} $$But we adjust for the actual flow through:$$ \text{COGS} = (\text{Cost of Goods Manufactured} + \text{Beginning Inventory of Finished Goods}) - \text{Ending Inventory of Finished Goods} $$$$ \text{COGS} = (360,000 + 57,000) - 71,000 = 417,000 $$Given the gross profit is $135,000, we add this to the COGS to find sales:$$ \text{Sales} = \text{COGS} + \text{Gross Profit} = 417,000 + 135,000 = 552,000 $$This calculation was incorrect in its final step. The correct calculation for COGS is:$$ \text{COGS} = (\text{Cost of Goods Manufactured} + \text{Beginning Inventory of Finished Goods}) - \text{Ending Inventory of Finished Goods} $$$$ \text{COGS} = (360,000 + 57,000) - 71,000 = 346,000 $$To find sales, we add the gross profit to COGS:$$ \text{Sales} = \text{COGS} + \text{Gross Profit} = 346,000 + 135,000 = 481,000 $$Therefore, the correct answer is D) $481,000.

For Calendar 2020, the Gross Profit of Seymour Corp