Item 4 The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 655,000 Direct labor cost $ 85,000 Raw material purchases $ 130,000 Selling expenses $ 106,000 Administrative expenses $ 45,000 Manufacturing overhead applied to work in process $ 227,000 Actual manufacturing overhead costs $ 203,000 Inventories Beginning Ending Raw materials $ 8,300 $ 10,200 Work in process $ 5,600 $ 20,700 Finished goods $ 73,000 $ 25,700 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. 3. Prepare an income statement.

The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 655,000 $ 85,000 $ 130,000 $ 106,000 $ 45,000 $ 227,000 $ 203,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,300 $ 5,600 $ 73,000 Ending $ 10, 200 $ 20,700 $ 25,700 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. 3. Prepare an income statement