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

	January 1			December 31
Raw material	$	53,000			$36,500
Work in process		136,000			179,000
Finished goods		295,000			261,000

During the year, the company purchased $115,000 of raw material and incurred $346,000 of direct labor costs. Other data: manufacturing overhead incurred, $465,000; sales, $1,570,000; selling and administrative expenses, $93,000; income tax rate, 30%.

Required:

Calculate cost of goods manufactured.

Calculate cost of goods sold.

Determine Taos net income.

A.	Cost of goods manufactured
B.	Cost of goods sold
C.	Net income