Ehrlich Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Raw material $60,000 $50,000 Work in process 140,000 180,000 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, $440,000; manufacturing overhead applied, $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 Ehrlich's net income. (prepare an income statement)