Exercise $11-11$A $($Algo$)$ Preparing financial statements LO $11-3$

Gibson Corporation began fiscal Year $2$ with the following balances in its inventory accounts.

During the accounting period, Gibson purchased $$239,900$ of raw materials and issued $$250,000$ of materials to the production

department. Direct labor costs for the period amounted to $$323,700,$ and manufacturing overhead of $$46,700$ was applied to Work in

Process Inventory. Assume that there was no over$-$ or underapplied overhead. Goods costing $$610,700$ to produce were completed

and transferred to Finished Goods Inventory. Goods costing $$601,000$ were sold for $$801,700$ during the period. Selling and

administrative expenses amounted to $$70,600.$

Required

a$.$ Determine the ending balance of each of the three inventory accounts that would appear on the year$-$end balance sheet.

b$1.$ Prepare a schedule of cost of goods manufactured and sold.

b$2.$ Prepare an income statement.

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Req A

Determine the ending balance of each of the three inventory accounts that would appear on the year$-$end balance sheet.