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 $524,000 Direct labor cost $70,000 Raw material purchases $118,000 Selling expenses $140,000 Administrative expenses $63,000 Manufacturing overhead applied to work in process $90,000 Actual manufacturing overhead costs $80,000 Inventories Beginning Ending Raw materials $7,000 $15,000 Work in nrcnc $10.000 95.000 Administrative expenses $63,000 Manufacturing overhead applied to work in process $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 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. Page 130 3. Prepare an income statement