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	$	131,000
Selling expenses	$	106,000
Administrative expenses	$	46,000
Manufacturing overhead applied to work in process	$	202,000
Actual manufacturing overhead costs	$	225,000

Inventories	Beginning		Ending
Raw materials	$	9,000	$	10,700
Work in process	$	5,100	$	20,800
Finished goods	$	80,000	$	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.

Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Prepare an income statement Mason Company Income Statement Selling and administrative expenses