Cost of goods manufactured-cost of goods sold

Question

Question: Hampton Company 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 spent $340,000 on direct labor. Other data: Manufacturing overhead incurred $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.

Required:

Calculate:

A. Cost of goods manufactured.
B. Cost of goods sold.
C. Net income.