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

Sales $ $651,000$

Direct labor cost $ $88,000$

Raw material purchases $ $131,000$

Selling expenses $ $101,000$

Administrative expenses $ $44,000$

Manufacturing overhead applied to work in process $ $229,000$

Actual manufacturing overhead costs $ $207,000$

Inventories Beginning Ending

Raw materials $ $8,900$ $ $10,200$

Work in process $ $5,200$ $ $20,100$

Finished goods $ $79,000$ $ $25,600$

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