Tao Company had the following inventory balances at the beginning and end of the year:

	January 1			December 31
Raw material	$	44,000			$26,000
Work in process		160,000			215,000
Finished goods		355,000			285,000

During the year, the company purchased $175,000 of raw material and incurred $370,000 of direct labor costs. Other data: manufacturing overhead incurred, $525,000; sales, $1,690,000; selling and administrative expenses, $85,000; income tax rate, 30%.

Required:

Calculate cost of goods manufactured.

Calculate cost of goods sold.

Determine Taos net income.