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

Raw Materials	$	55,700
Work in Process		83,300
Finished Goods		27,600

During the accounting period, Franklin purchased $239,500 of raw materials and issued $249,700 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $47,600 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,600 were sold for $800,500 during the period. Selling and administrative expenses amounted to $70,300. 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.