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 Ending Beginning $ 8,400 $ 10,200 $ 5,300 $ 20,200 Finished goods $ 78,000 $ 25,300 Work in process $ 655,000 $ 89,000 $ 137,000 $ 101,000 $ 42,000 $225,000 $ 202,000 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. Mason Company Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning raw materials inventory Add: Purchases of raw materials Total raw materials available Less: Ending raw materials inventory Direct materials used in production Direct labor Manufacturing overhead Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured $ 8,400 137,000 145,400 10,200 $ 135,200 89,000 225,000 449,200 449,200 20,200 Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overl of Goods Sold. Mason Company Schedule of Cost of Goods Sold Beginning finished goods inventory $ 78,000 Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold 25,300 Prepare an income statement. Sales Cost of goods sold Gross margin Mason Company Income Statement 655,000 Selling and administrative expenses: Selling expenses Administrative expense Net operating income $ 101,000 42,000 655,000 143,000 $ 512,000