Mason Company provided the following data for this year:

Sales $ $655,000$

Direct labor cost $ $83,000$

Raw material purchases $ $135,000$

Selling expenses $ $107,000$

Administrative expenses $ $49,000$

Manufacturing overhead applied to work in process $ $224,000$

Actual manufacturing overhead costs $ $207,000$

Inventories Beginning Ending

Raw materials $ $8,000$ $ $10,500$

Work in process $ $5,300$ $ $20,700$

Finished goods $ $72,000$ $ $25,800$

Required:

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

Prepare a schedule of cost of goods sold. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare an income statement.