The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 657,000 Direct labor cost $ 82,000 Raw material purchases $ 138,000 Selling expenses $ 102,000 Administrative expenses $ 42,000 Manufacturing overhead applied to work in process $ 224,000 Actual manufacturing overhead costs $ 200,000 Inventories Beginning Ending Raw materials $ 8,100 $ 10,700 Work in process $ 5,100 $ 20,800 Finished goods $ 78,000 $ 25,800 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.