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

Raw Materials	$	54,300
Work in Process		83,000
Finished Goods		26,500

During the accounting period, Fanning purchased $240,000 of raw materials and issued $249,600 of materials to the production department. Direct labor costs for the period amounted to $322,800, and manufacturing overhead of $46,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,300 were sold for $801,200 during the period. Selling and administrative expenses amounted to $70,500. Required

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

2. Prepare a schedule of cost of goods manufactured and sold and an income statement.

Complete this question by entering your answers in the tabs below.

• Req A

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

	Ending Balance
Raw materials
Work in process
Finished goods

• Req B CGM Sched

Prepare a schedule of cost of goods manufactured and sold.

FANNING CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended Year 2
Raw materials available
Raw materials used
Total manufacturing costs
Total work in process inventory
Cost of goods manufactured
Goods available for sale
Cost of goods sold

• Req B Inc Stmt

Prepare an income statement.

FANNING CORPORATION
Income Statement
For the year ended Year 2