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

Sales$651,000Direct labor cost$86,000Raw material purchases$138,000Selling expenses$103,000Administrative expenses$43,000Manufacturing overhead applied to work in process$226,000Actual manufacturing overhead costs$209,000

InventoriesBeginningEndingRaw materials$8,500$10,500Work in process$5,000$20,400Finished goods$71,000$25,800

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.