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 

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

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