The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 653,000 Direct labor cost $ 82,000 Raw material purchases $ 137,000 Selling expenses $ 106,000 Administrative expenses $ 40,000 Manufacturing overhead applied to work in process $ 202,000 Actual manufacturing overhead costs $ 226,000 Inventories Beginning Ending Raw materials $ 8,900 $ 10,900 Work in process $ 5,000 $ 20,300 Finished goods $ 70,000 $ 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.