The following information is available for Elliot Company.

January 1, 2013 2013 December 31, 2013

Raw materials inventory $ 26,000 $30,000

Work in process inventory 13,500 22,200

Finished goods inventory 30,000 21,000

Materials purchased $170,000

Direct labor 220,000

Manufacturing overhead 180,000

Sales 800,000

Instructions (a) Compute cost of goods manufactured. (This does NOT have to a formal schedule. However, be sure to show how your computations.)

(b) Prepare an income statement in good form through gross profit.