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

Sales $ 659,000

Direct labor cost $ 83,000

Raw material purchases $ 130,000

Selling expenses $ 107,000

Administrative expenses $ 48,000

Manufacturing overhead applied to work in process $ 209,000

Actual manufacturing overhead costs $ 225,000

Inventories

Beginning Ending

Raw materials: $8,300 $10,700

Work in process: $5,800 $20,300

Finished goods: $78,000 $25,100

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.