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

Sales	$	656,000
Direct labor cost	$	84,000
Raw material purchases	$	131,000
Selling expenses	$	110,000
Administrative expenses	$	44,000
Manufacturing overhead applied to work in process	$	227,000
Actual manufacturing overhead costs	$	207,000

Inventories	Beginning		Ending
Raw materials	$	8,200	$	10,400
Work in process	$	5,400	$	20,700
Finished goods	$	76,000	$	25,600

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.