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

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 Tao's net income.

Question

Tao Company had the following inventory balances at the beginning and end of the year:
  
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 Tao's net income.

Quizplus · Accepted Answer

The Answer of Tao Company had the following inventory balances at the beginning and end of the year:
  
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 Tao's net income.

Tao Company Had the Following Inventory Balances at the Beginning