Preparing financial statements Pressley Corporation began fiscal year 2007 with the following balances in its inventory accounts.

During the accounting period, Pressley purchased $240,000 of raw materials and issued $248,000 of materials to the production department. Direct labor costs for the period amounted to $324,000, and factory overhead of $48,000 was applied to Work in Process Inventory. Assume that there was no overor underapplied overhead. Goods costing $612,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $602,000 were sold for $800,000 during the period. Selling and administrative expenses amounted to $72,000.
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.