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

Sales	$ 656,000
Direct labor cost	$ 83,000
Raw material purchases	$ 132,000
Selling expenses	$ 101,000
Administrative expenses	$ 41,000
Manufacturing overhead applied to work in process	$ 227,000
Actual manufacturing overhead costs	$ 204,000

Inventories	Beginning	Ending
Raw materials	$ 8,600	$ 10,200
Work in process	$ 5,200	$ 20,000
Finished goods	$ 77,000	$ 25,100

Required:

1. Prepare a schedule of the cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of the cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to the Cost of Goods Sold.

3. Prepare an income statement.