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

Sales$ 653,000Direct labor cost$ 82,000Raw material purchases$ 132,000Selling expenses$ 108,000Administrative expenses$ 42,000Manufacturing overhead applied to work in process$ 228,000Actual manufacturing overhead costs$ 208,000

InventoriesBeginningEndingRaw materials$ 8,700$ 10,500Work in process$ 5,800$ 20,800Finished goods$ 74,000$ 25,200

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.