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

Sales $ 651,000 Direct labor cost $ 83,000 Raw material purchases $ 139,000 Selling expenses $ 104,000 Administrative expenses $ 43,000 Manufacturing overhead applied to work in process $ 208,000 Actual manufacturing overhead costs $ 228,000

Inventories Beginning Ending

Raw materials $ 8,500 $ 10,900

Work in process $ 5,800 $ 20,000

Finished goods $ 71,000 $ 25,600

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.