The Following Data Relates to Rose Industries During Year 8

Essay

The following data relates to Rose Industries during Year 8.
$\begin{array}{lcc}&\text { Januarv } 1, \text { Year } 8 & \text { December } 31 \text {, Year } 8\\\text { Raw Materials Inventory } & \$ 47,570 & \$ 58,640 \\\text { Work-in-Process Inventory } & 128,910 & 117,390 \\\text { Finished Goods Inventory } & 36,250 & 47,220\end{array}$

$\text { It incurred factory costs for the year as follows: }$

$\begin{array}{ll}\text { Raw Materials Purchased } & \$ 475,900 \\\text { Labor Services Used } & 287,600 \\\text { Other Factory Costs Incurred } & 129,200\end{array}$

$\text { Other data relating to the year are as follows: }$

$\begin{array}{lr}\text { Sales } & \$ 1,360,000 \\\text { Selling and Administrative Expenses } & \$ 289,400\end{array}$

$\text { The income tax rate is } 40 \text { percent. }$

Required:
a. Compute the cost of raw materials used during Year 8.
b. Compute the cost of units completed during Year 8 and transferred to the finished goods storeroom.
c. Compute net income for Year 8.