Exercise 3-6 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3]

Mason Company provided the following data for this year:

Sales	$ 657,000
Direct labor cost	$ 83,000
Raw material purchases	$ 139,000
Selling expenses	$ 100,000
Administrative expenses	$ 42,000
Manufacturing overhead applied to work in process	$ 222,000
Actual manufacturing overhead costs	$ 208,000

Inventories	Beginning	Ending
Raw materials	$ 8,200	$ 10,400
Work in process	$ 6,000	$ 21,000
Finished goods	$ 72,000	$ 25,900

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 the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.