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

Sales $ 658,000 Direct labor cost $ 81,000 Raw material purchases $ 134,000 Selling expenses $ 107,000 Administrative expenses $ 42,000 Manufacturing overhead applied to work in process $ 224,000 Actual manufacturing overhead costs $ 207,000

Inventories Beginning Ending Raw materials $ 8,500 $ 10,200 Work in process $ 5,400 $ 20,600 Finished goods $ 74,000 $ 25,900

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.