Prepare schedules of cost of goods manufactured and cost of

Question

Valenko Company provided the following account balances for the year ended December raw materials are used in production as direct materials):
Selling expenses................$215,000
Purchases of raw materials............$260,000
Direct labor..................$?
Administrative expenses.............$160,000 Manufacturing overhead applied to work in process..$340,000
Total actual manufacturing overhead costs......$350,000
Inventory balances at the beginning and end of the year were as follows:

The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The company's overapplied or under applied overhead is closed entirely to cost of goods sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.