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

Sales	$ 524,000
Direct labor cost	$ 70,000
Raw material purchases	$ 118,000
Selling expenses	$ 140,000
Administrative expenses	$ 63,000
Manufacturing overhead applied to work in process	$ 90,000
Actual manufacturing overhead costs	$ 80,000

Inventories	Beginning	Ending
Raw materials	$ 7,000	$ 15,000
Work in process	$ 10,000	$ 5,000
Finished goods	$ 20,000	$ 35,000

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.