Prepare an Income Statement

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales	$	658,000
Direct labor cost	$	88,000
Raw material purchases	$	139,000
Selling expenses	$	105,000
Administrative expenses	$	41,000
Manufacturing overhead applied to work in process	$	204,000
Actual manufacturing overhead costs	$	228,000

Inventories	Beginning of Year	End of Year
Raw materials	$	8,500	$	10,300
Work in process	$	5,400	$	20,200
Finished goods	$	75,000	$	25,600

What is the DM used?

What is the COGM?

What is the adjusted COGS?

What is the Net Income?