Derflinger Corporation reported the following data for the month of January:

	Beginning	Ending
Inventories:
Raw materials	$31,000	$26,500
Work in process	$18,500	$19,500
Finished goods	$42,500	$37,500

Additional information:

Sales	$252,500
Raw materials purchases	$66,500
Direct labor cost	$32,500
Manufacturing overhead	$74,500
Selling expense	$20,500
Administrative expense	$44,400

1.

The cost of goods manufactured for January was:

a. $178,000

b. $177,000

c. $179,000

d. $173,500

2.

The net operating income for January was:

a. $70,500

b. $80,000

c. $14,100

d. $5,600