Reference no: EM132638698

Inc. had the following inventory balances at the beginning and end of the year:

                                   January 1                December 31

Raw material          $50,000                   $35,000

Work in process         130,000                   170,000

Finished goods              280,000                 255,000

During the year, the company purchased $100,000 of raw material and incurred $340,000 of direct labor costs. Other data: manufacturing overhead incurred, $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.

Required:

Question A. Calculate cost of goods manufactured.

Question B. Calculate cost of goods sold.

Question C. Determine net income.