The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 657,000 $ 89,000 $ 137,000 $ 105,000 $ 42,000 $ 222,000 $ 206,000 Inventories Raw materials Beginning Ending $ 8,400 $ 10,800 Work in process $ 5,500 Finished goods $ 73,000 $ 20,800 $ 25,700 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.