Sales	$	659,000
Direct labor cost	$	81,000
Raw material purchases	$	135,000
Selling expenses	$	100,000
Administrative expenses	$	43,000
Manufacturing overhead applied to work in process	$	203,000
Actual manufacturing overhead costs	$	225,000

Inventories	Beginning		Ending
Raw materials	$	8,500	$	10,800
Work in process	$	5,400	$	20,600
Finished goods	$	74,000	$	26,000

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.