Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses 213,000 Purchases of raw materials 268,000 Direct labor ? 155,000 MM Administrative expenses 5 Manufacturing overhead applied to work in process 5 370,000 Actual manufacturing overhead cost $ 351,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 52,000 $ 30,000 Work in process ? $ 24,000 Finished goods $ 32,000 7 The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $670,000; 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.)