Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Beginning and ending inventory balances were as follows: The total manufacturing costs added to production for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $665,000; 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.)