Superior Company provided the following data for the year endedDecember 31 (all raw materials are used in production as directmaterials): Selling expenses $ 214,000 Purchases of raw materials $261,000 Direct labor ? Administrative expenses $ 155,000Manufacturing overhead applied to work in process $ 374,000 Actualmanufacturing overhead cost $ 358,000 Inventory balances at thebeginning and end of the year were as follows: Beginning of YearEnd of Year Raw materials $ 60,000 $ 31,000 Work in process ? $33,000 Finished goods $ 34,000 ? The total manufacturing costs forthe year were $685,000; the cost of goods available for saletotaled $730,000; the unadjusted cost of goods sold totaled$670,000; and the net operating income was $32,000. The company’sunderapplied or overapplied overhead is closed to Cost of GoodsSold. Required: Prepare schedules of cost of goods manufactured andcost of goods sold and an income statement. (Hint: Prepare theincome statement and schedule of cost of goods sold first followedby the schedule of cost of goods manufactured.)