The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 658,000 Direct labor cost $ 84,000 Raw material purchases $ 135,000 Selling expenses $ 104,000 Administrative expenses $ 48,000 Manufacturing overhead applied to work in process $ 204,000 Actual manufacturing overhead costs $ 222,000 Inventories Beginning Ending Raw materials $ 8,400 $ 10,600 Work in process $ 5,300 $ 20,900 Finished goods $ 72,000 $ 25,400 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
Direct materials:
Beginning raw materials inventory	$8,400
Add: Purchases of raw materials	135,000
Total raw materials available	143,400
Less: Ending raw materials inventory	10,600
Raw materials used in production
Direct labor
Manufacturing overhead
Total manufacturing costs
Add: Beginning work in process inventory
		0
Less: Ending work in process inventory
Cost of goods manufactured

Mason Company
Schedule of Cost of Goods Sold
Beginning finished goods inventory
Add: Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Unadjusted cost of goods sold
Add: Underapplied overhead
Adjusted cost of goods sold

Prepare income statement with the following:

Sales

Cost of goods sold

Gross margin0

Selling and administrative expenses:

Selling expenses

Administrative expense0

Net operating income$0