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. Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning 8,000 $ $ 5,500 $ 80,000 Ending $ 10,100 $ 20,800 $ 25,100 $ 658,000 $ 82,000 $ 139,000 $ 103,000 $ 42,000 $ 221,000 $ 204,000