Sales $ $524,000$

Direct labor cost $ $70,000$

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 Beginning Ending

Raw materials $ $7,000$ $ $15,000$

Work in process $ $10,000$ $ $5,000$

Finished goods $ $20,000$ $ $35,000$

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. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

$3.$ Prepare an income statement.