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

Sales$659,000

Direct labor cost$84,000

Raw material purchases$137,000

Selling expenses$108,000

Administrative expenses$43,000

Manufacturing overhead applied to work in process$201,000

Actual manufacturing overhead costs$230,000

InventoriesBeginningEnding

Raw materials$8,400$10,300

Work in process$5,900$20,300

Finished goods$72,000$25,300

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.