The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 653,000 $ 89,000 $ 135,000 $ 100,000 $ 42,000 $ 228,000 $ 208,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,600 $ 5,100 $ 72,000 Ending $ 10,100 $ 20,100 $ 25,600 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement. Required 1 Required 2 Required 3 Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Mason Company Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory 8,600 Add: Purchases of raw materials 135,000 Total raw materials available 143,600 (10,100) Less: Ending raw materials inventory Direct materials used in production $ 133,500 89,000 Direct labor Manufacturing overhead Work in process Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 222,500 222,500 (20,100)| Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold 72,000 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold (25,600) Required 1 Required 2 Required 3 Prepare an income statement. Mason Company Income Statement Sales 0 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expense 0 Net operating income $ 0 Required 2 Required 3