Detailed Answer
Answer (A) is correct.
Cost of goods manufactured ($2,425,000) equals total manufacturing costs
($2,500,000) plus beginning work-in-process (75% of EWIP) minus ending
work-in-process. The ending work-in-process is $300,000.
$2,500,000 + .75 EWIP – EWIP = $2,425,000
$2,500,000 – .25 EWIP = $2,425,000
EWIP = $75,000 ÷ .25
EWIP = $300,000