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

Sales $ $654,000$

Direct labor cost $ $89,000$

Raw material purchases $ $137,000$

Selling expenses $ $105,000$

Administrative expenses $ $50,000$

Manufacturing overhead applied to work in process $ $224,000$

Actual manufacturing overhead costs $ $206,000$

Inventories Beginning Ending

Raw materials $ $8,500$ $ $10,300$

Work in process $ $5,800$ $ $20,400$

Finished goods $ $75,000$ $ $25,100$

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.