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

Selling expenses $ 221,000

Purchases of raw materials $ 267,000

Direct labor ?

Administrative expenses $ 155,000

Manufacturing overhead applied to work in process $ 340,000

Total actual manufacturing overhead costs $ 367,000

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

Beginning of Year End of Year

Raw materials $ 61,000 $ 30,400

Work in process ? $ 31,000

Finished goods $ 37,400 ?

The total manufacturing costs for the year were $689,000;

the cost of goods available for sale totaled $729,000;

the unadjusted cost of goods sold totaled $665,000; and the net operating income was $41,000.

The companys overapplied or underapplied overhead is closed entirely to cost of goods sold. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Required: a. Prepare a schedule of cost of goods manufactured. b. Prepare a schedule of cost of goods sold. c. Prepare an income statement for the year.