8. Manufacturing costs (10.0 Points) AAC, a manufacturer of lawn mowers, had the following inventory balances Jan 1, 2014 $55,000 110,000 160,000 Inventory Classification Raw materials Work in process Finished goods Dec 31, 2014 $75,000 125,000 155,000 During 2014, the company purchased $240,000 of rew material and spent $420,000 for direct labor. Overhead costs were as follows Selling and Admin Indirect labor Depreciation on plant and equipment Utilities Other $12,000 22,000 110,000 23,000 35,000 Sales revenue was $1,210,000 for the year. Selling and administration expenses for the year amounted to $105,000. The firm's tax rate is 35 percent. a) Calculate the total cost of goods manufactured (Points 7.5) b) Calculate the total cost of goods sold (Points 2.5)