The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 653,000 Direct labor cost $ 87,000 Raw material purchases $ 137,000 Selling expenses $ 108,000 Administrative expenses $ 48,000 Manufacturing overhead applied to work in process $ 223,000 Actual manufacturing overhead costs $ 204,000 Inventories Beginning Ending Raw materials $ 8,600 $ 10,300 Work in process $ 5,600 $ 20,700 Finished goods $ 78,000 $ 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.