Sales $ $659,000$

Direct labor cost $ $88,000$

Raw material purchases $ $139,000$

Selling expenses $ $108,000$

Administrative expenses $ $42,000$

Manufacturing overhead applied to work in process $ $223,000$

Actual manufacturing overhead costs $ $201,000$

Inventories Beginning Ending

Raw materials $ $8,400$ $ $10,500$

Work in process $ $5,500$ $ $20,800$

Finished goods $ $77,000$ $ $25,700$

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.