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

Raw Materials	$	55,000
Work in Process		84,000
Finished Goods		26,500

During the accounting period, Gibson purchased $238,400 of raw materials and issued $249,200 of materials to the production department. Direct labor costs for the period amounted to $322,100, and manufacturing overhead of $47,800 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,700 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,400 were sold for $801,900 during the period. Selling and administrative expenses amounted to $70,000. 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.