Hamilton Company Had the Following Inventory Balances at the Beginning

Essay

Hamilton Company had the following inventory balances at the beginning and end of the year: $$\begin{array} { l c c } &\text { January 1 } & \text { December 31 } \\\text { Raw material } & \$ 50,000 & \$ 35,000 \\\text { Work in process } & 130,000 & 170,000 \\\text { Finished goods } & 280,000 & 255,000\end{array}$$
During the year, the company purchased $100,000 of raw material and incurred $340,000 of direct labor costs. Other data: manufacturing overhead incurred, $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.
Required:
A. Calculate cost of goods manufactured.
B. Calculate cost of goods sold.
C. Determine Hamilton's net income.