Sales $ $653,000$

Direct labor cost $ $87,000$

Raw material purchases $ $135,000$

Selling expenses $ $102,000$

Administrative expenses $ $44,000$

Manufacturing overhead applied to work in process $ $227,000$

Actual manufacturing overhead costs $ $209,000$

Inventories Beginning Ending

Raw materials $ $8,700$ $ $10,600$

Work in process $ $5,300$ $ $20,600$

Finished goods $ $79,000$ $ $25,100$

Required:

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Prepare a schedule of cost of goods sold. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare an income statement.