The following data from the just completed year are taken from the accounting records of Kenton

Company:

Sales

$ 975,000

Direct labor cost

$ 165,000

Raw material purchases

$ 229,000

Selling expense

$ 48,750

Administrative expenses

$ 146,250

Manufacturing overhead applied to work in process $ 180,000

Actual manufacturing overhead costs

$ 175,050

Inventories:

Beginning

Ending

Raw materials

$ 18,000 $ 17,500

Work in process

$ 20,000 $ 14,750

Finished goods

$ 9,000 $ 11,000

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.