Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO6]

Valenko Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Inventory balances at the beginning and end of the year were as follows:

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The company’s overapplied or underapplied overhead is closed entirely to cost of goods sold.
Required:
Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.
(Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

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Selling expenses Purchases of raw materials $215,000 $260,000 Direct labor...... ? Administrative expenses. $160,000 Manufacturing overhead applied to work in process $340,000 Total actual manufacturing overhead costs. $350,000