The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Beginning Work in process $ 77,000 Ending $11,000 $ 20,500 $25,600 $8,500 $5,300 $ 652,000 $ 88,000 $ 132,000 $ 106,000 $ 46,000 $ 223,000 $ 200,000 Finished goods 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. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production w Mason Company Schedule of Cost of Goods Manufactured Beginning work in process inventory $ 5,300 Direct materials: Beginning raw materials inventory $ 8,500 Add: Purchases of raw materials 132,000 Total raw materials available Less: Ending raw materials inventory 11,000 Direct materials used in production Manufacturing overhead Direct labor Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 223,000 88,000 311,000 316,300 20,500 Prepare a schedule of cost of goods sold. Assume that the company's of Goods Sold. Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory 77,000 Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory 25,600 Unadjusted cost of goods sold Less: Overapplied overhead Adiusted cost of goods sold Sales Cost of goods sold Gross margin Mason Company Income Statement $ 652,000 Selling and administrative expenses: Administrative expense Selling expenses Net operating income 46,000 652,000 106,000 152,000 $ 500,000