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

Sales $660,000 Direct labor cost $86,000 Raw material purchases $136,000 selling expenses $104,000 Administrative expenses $43,000 Manufacturing overhead applied to work in process $229,000 Actual manufacturing overhead costs $203,000

Inventories Beginning Ending

Raw materials $8,600. $10,200

Work in process $5,700. $20,800

Finished goods $74,000. $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 companys under applied or over applied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.