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

Sales $ 656,000

Direct labor cost $ 82,000

Raw material

Purchases $ 139,000

Selling expenses $ 108,000

Administrative expenses $ 49,000

Manufacturing overhead applied to work in process $ 202,000 Actual manufacturing overhead costs $ 229,000

Inventories Beginning Ending Raw materials $ 8,600 $ 10,600

Work in process $ 5,400 $ 20,900 Finished goods $ 79,000 $ 25,500

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.