Hamilton Company had the following inventory balances at the beginning and end of the year:
Jan. 1 Dec. 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:
A. Calculate cost of goods manufactured.
B. Calculate cost of goods sold.
C. Determine Hamilton's net income.