3.6

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $ 653,000

Direct labor cost $ 82,000

Raw material purchases $ 132,000

Selling expenses $ 105,000

Administrative expenses $ 47,000

Manufacturing overhead applied to work in process $ 221,000

Actual manufacturing overhead costs $ 208,000

Inventories

Raw materials Beginning $ 8,900 Ending $ 10,600

Work in process Beginning$ 5,500 Ending $ 20,700

Finished goods Beginning $ 71,000 Ending $ 25,400

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.