PROBLEM 3-22 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO6] Valenko Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor.. Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs Inventory balances at the beginning and end of the year were as follows: $215,000 $260,000 $160,000 $340,000 $350,000 Raw materials Work in process Finished goods Beginning of Year- End of Year $50,000 ? $30,000 $40,000 $33,000 ? The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665.000; and the net operating income was $35,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the sched- ule of cost of goods manufactured.)