Rockeagle Corporation began fiscal year 2018 with the following balances in its inventory accounts:
Raw Materials ........................................$30,000
Work in Process.......................................45,000
Finished Goods.......................................14,000
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or under applied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b. Prepare a schedule of cost of goods manufactured and sold and an income statement.