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

Sales $ 650,000

Direct labor cost $ 89,000

Raw material purchases $ 132,000

Selling expenses $ 102,000

Administrative expenses $ 47,000

Manufacturing overhead applied to work in process $ 205,000

Actual manufacturing overhead costs $ 227,000

Inventories Beginning Ending

Raw materials $8,100 $10,800

Work in process $5,100 $20,500

Finished goods $78,000 $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.

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Mason Company Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs 0 Cost of goods manufactured Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Mason Company Schedule of Cost of Goods Sold Prepare an income statement. Mason Company Income Statement 0 Selling and administrative expenses: 0 0