Selling expenses $ 214,000 Purchases of raw materials $ 270,000 Direct labor ? Administrative expenses $ 150,000 Manufacturing overhead applied to work in process $ 375,000 Actual manufacturing overhead cost $ 356,000

Inventory balances at the beginning and end of the year were as follows:

Beginning of Year End of Year Raw materials $ 56,000 $ 30,000 Work in process ? $ 25,000 Finished goods $ 39,000 ?

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $32,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

make an income statement