Answer:
Mason Company
a) Schedule of Cost of Goods Manufactured:
Direct labor cost                        $80,000
Raw material purchases          $135,000
Manufacturing overhead
applied to work in process     $201,000
Cost of goods manufactured $416,000
b) Schedule of Cost of Goods Sold:
Cost of goods manufactured $416,000
Under-applied overhead            21,000
Cost of goods sold                $437,000
c) Income Statement:
Sales                                $656,000
Cost of goods sold          $437,000
Gross profit                      $219,000
Selling expenses            $105,000
Administrative expenses  $41,000
Total expenses               $146,000
Net income                       $73,000
Explanation:
a) Data and Calculations:
Sales                                $656,000
Direct labor cost                $80,000
Raw material purchases $135,000
Selling expenses            $105,000
Administrative expenses $41,000
Manufacturing overhead
applied to work in process $201,000
Actual manufacturing
overhead costs                  $222,000
Under-applied overhead    $21,000 ($222,000 - $201,000)