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

Sales $ $655,000$

Direct labor cost $ $89,000$

Raw material purchases $ $134,000$

Selling expenses $ $103,000$

Administrative expenses $ $42,000$

Manufacturing overhead applied to work in process $ $226,000$

Actual manufacturing overhead costs $ $203,000$

Inventories Beginning Ending

Raw materials $ $8,200$ $ $10,800$

Work in process $ $5,500$ $ $20,200$

Finished goods $ $77,000$ $ $25,600$

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.