EXERCISE 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement L03-3 The following data from the just completed year are taken from the accounting records of Mason Company:

Sales......

Sales	$524,000
Direct Labor Cost	70000
Raw Material Purchases	118,000
Selling Expenses	$140,000
Administrative Expenses	$63,000
Manufacturing Overhead Applied to Work In progress	$90,000
Actual Manufacturing Overhead Costs	$80,000

Inventories	Beginning	Ending
Raw materials	$7,000	$15,000
Work in Process	$10,000	$5,000
Finished Goods	$20,000	$35,000

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used tin production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company undersupplied or over applied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.