Hamilton Company Had the Following Inventory Balances at the Beginning

question 11

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.

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Definitions:

Human Capital

Investments in people, such as education and health care, that increase their productivity and earnings potential.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Human Capital

The sum of abilities, expertise, and non-material assets possessed by people that can generate economic benefits for themselves, their employers, or their local area.

Physical Capital

Tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.