As the recently appointed controller of Lynbrook, Inc. you have been given the following data for the year ended December 31, 2022: Selling expenses Purchases of raw materials Direct labor $120,000 $330,000 Administrative expenses Manufacturing overhead cost ? $ 150,000 $250,000 (all raw materials are used in production as direct materials) Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $50,000 $30,000 Work in process ? $60,000 $40,000 $70,000 Finished goods The total manufacturing costs added to production for the year were $750,000; the cost of goods sold totaled $725,000; and the net operating income was $60,000. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and a formal income statement, all in "good form" with 3 line headings. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)