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

Sales$ 657,000Direct labor cost$ 81,000Raw material purchases$ 138,000Selling expenses$ 102,000Administrative expenses$ 41,000Manufacturing overhead applied to work in process$ 223,000Actual manufacturing overhead costs$ 201,000

InventoriesBeginningEndingRaw materials$ 8,700$ 10,100Work in process$ 5,700$ 20,000Finished goods$ 73,000$ 25,700

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.