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The following data from the just-completed year are taken from the accounting records of Mason Company:
| Sales | $ 654,000 |
| Direct labor cost | $ 87,000 |
| Raw material purchases | $ 133,000 |
| Selling expenses | $ 100,000 |
| Administrative expenses | $ 43,000 |
| Manufacturing overhead applied to work in process | $ 227,000 |
| Actual manufacturing overhead costs | $ 200,000 |
| Inventories | Beginning | Ending |
| Raw materials | $ 8,100 | $ 10,400 |
| Work in process | $ 5,800 | $ 20,200 |
| Finished goods | $ 72,000 | $ 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.
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