EXERCISE 3–6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement LO3–3 The following data from the just completed year are taken from the accounting records of Mason Company:

. . . . . . . . . . . . . . . . . . . $524,000

. . . . . . . . . . . $70,000

. . . . . $118,000

. . . . . . . . . . $140,000

. . . . $63,000

$90,000

$80,000 Inventories Beginning Ending

. . $7,000 $15,000

. $10,000 $5,000

. . $20,000 $35,000 Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.