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

	January 1			December 31
Raw material	$	43,000			$25,500
Work in process		158,000			212,000
Finished goods		350,000			283,000

During the year, the company purchased $170,000 of raw material and incurred $368,000 of direct labor costs. Other data: manufacturing overhead incurred, $520,000; sales, $1,680,000; selling and administrative expenses, $84,000; income tax rate, 40%.

Required:

Calculate cost of goods manufactured.

Calculate cost of goods sold.

Determine Taos net income.