The following information pertains to Yuji Corporation:

 

	January 1, 2008	December 31, 2008
Raw materials inventory	$ 34,000		$ 38,000
Work-in-process inventory	126,000		145,000
Finished goods inventory	76,000		68,000

Costs incurred during the year 2008 were as follows:

 

Raw material purchased	$116,000
Wages to factory workers	55,000
Salary to factory supervisors	25,000
Salary to selling and administrative staff	40,000
Depreciation on factory building and equipment	10,000
Depreciation on office building	12,000
Utilities for factory building	5,000
Utilities for office building	7,500

Required:

Sales revenue during 2008 was $300,000. The income tax rate is 40%. Compute the following:

1. Cost of raw materials used.

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2. Cost of goods manufactured/completed.

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3. Cost of goods sold.

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4. Gross margin.

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5. Net income.