The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 660,000 Direct labor cost $ 89,000 Raw material purchases $ 133,000 Selling expenses $ 101,000 Administrative expenses $ 47,000 Manufacturing overhead applied to work in process $ 207,000 Actual manufacturing overhead costs $ 221,000 Inventories Beginning Ending Raw materials $ 8,100 $ 10,400 Work in process $ 5,400 $ 20,200 Finished goods $ 79,000 $ 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.