Reference no: EM132633270

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.