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

Sales	$	654,000
Direct labor cost	$	90,000
Raw material purchases	$	139,000
Selling expenses	$	102,000
Administrative expenses	$	43,000
Manufacturing overhead applied to work in process	$	203,000
Actual manufacturing overhead costs	$	223,000

Inventories	Beginning of Year		End of Year
Raw materials	$	9,000	$	10,100
Work in process	$	5,200	$	20,200
Finished goods	$	77,000	$	25,100

Required:

1.	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:
Raw materials available for use
Raw materials used in production
Total manufacturing costs
Cost of goods manufactured

2.	Prepare a schedule of cost of goods sold.

Mason Company
Schedule of Cost of Goods Sold
Beginning finished goods inventory
Goods available for sale
Unadjusted cost of goods sold
Adjusted cost of goods sold

3.	Prepare an income statement.

Mason Company
Income Statement
Selling and administrative expenses: