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

Sales	$ 651,000
Direct labor cost	$ 84,000
Raw material purchases	$ 139,000
Selling expenses	$ 102,000
Administrative expenses	$ 43,000
Manufacturing overhead applied to work in process	$ 220,000
Actual manufacturing overhead costs	$ 206,000

Inventories	Beginning	Ending
Raw materials	$ 9,000	$ 10,600
Work in process	$ 5,800	$ 20,500
Finished goods	$ 78,000	$ 25,500

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.