Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct material

Selling expenses............................................$214,000

Purchases of raw materials............................$263,000

Direct labor...................................................... ?

Administrative expenses.................................. $158,000

Manufacturing overhead applied to work in progress..........$338,000

Total actual manufacturing overhead costs..........................$351,000

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

Beginning of the Year End of the Year

Raw materials $55,000 $35,000

Work in Progress ? $23,000

Finished goods $39,000 ?

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $37,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold.

1. Prepare a schedule of cost of goods manufactured.

2. Prepare a schedule of cost of goods sold.

3. Prepare an income statement for the year.