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

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.

Sales	$ 659,000
Direct labor cost	$ 89,000
Raw material purchases	$ 132,000
Selling expenses	$ 104,000
Administrative expenses	$ 41,000
Manufacturing overhead applied to work in process	$ 223,000
Actual manufacturing overhead costs	$ 208,000

Inventories	Beginning	Ending
Raw Materials	8300	10800
Work in Process	5000	20300
Finished Goods	75000	25300