Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses$215,000Purchases of raw materials$269,000Direct labor?Administrative expenses$151,000Manufacturing overhead applied to work in process$372,000Actual manufacturing overhead cost$357,000

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

Beginning of YearEnd of YearRaw materials$52,000$33,000Work in process?$26,000Finished goods$31,000?

The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $38,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint:Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)