Based on the following data, what is the gross profit for the company?
Sales ......................................................... $1,000,000
Net purchases of raw materials ........................... 600,000
Cost of goods manufactured .............................. 800,000
Marketing and administrative expenses ................. 250,000
Indirect manufacturing costs ............................. 500,000

a. $400,000
b. $900,000
c. $200,000
d. $600,000

Beginning Ending Inventory Inventory Work-in-process $500,000 S400,000 Finished goods 500,000 100,000