QUESTION 3 Question three: (10 points) The following data from the just completed year are taken from the accounting records of Mason Company. Sales Direct labor cost. $524,000 $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 Raw materials Beginning of Year End of Year $7,000 $15,000 $10,000 $5,000 $20,000 $35,000 Work in process. Finished goods. 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. Any underapplied or overapplied overhead was closed out to cost of goods sold. 3. Prepare an income statement.