The following data from the just completed year are taken from the accounting records of Mason Company:

Sales	$ 660,000
Direct labor cost	$ 84,000
Raw material purchases	$ 137,000
Selling expenses	$ 104,000
Administrative expenses	$ 45,000
Manufacturing overhead applied to work in process	$ 228,000
Actual manufacturing overhead costs	$ 206,000

Inventories	Beginning	Ending
Raw materials	$ 8,000	$ 10,000
Work in process	$ 5,500	$ 20,400
Finished goods	$ 76,000	$ 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.