TB Problem Qu. 2-135 Tao Company had the following inventory... Tao Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Raw material Work in process Finished goods $ 48,000 168,000 $28,000 227,000 375,000 293,000 During the year, the company purchased $195,000 of raw material and incurred $378,000 of direct labor costs. Other data: manufacturing overhead incurred, $545,000; sales, $1,730,000; selling and administrative expenses, $89,000; income tax rate, 35%. Required: A. Calculate cost of goods manufactured. B. Calculate cost of goods sold. C. Determine Tao's net income. A Cost of goods manufactured B. Cost of goods sold C. Net income