Munoz Corporation began fiscal Year $2$ with the following balances in its inventory accounts. Determine the ending balance of each of the three inventory accounts that would appear on the year$-$end balance sheet.

Munoz Corporation

Raw Materials

Work in Process

Work in Proces Finished Goods Prepare a schedule of cost of goods manufactured and sold.

MUNOZ CORPORATION

Schedule of cost of goods manufactured and sold

$\begin{array}{cc}\text{F}\text{o}\text{r}\text{t}\text{h}\text{e}\text{y}\text{e}\text{a}\text{r}\text{e}\text{n}\text{d}\text{e}\text{d}\text{Y}\text{e}\text{a}\text{r}2& ?\\ ?& 0\\ \text{R}\text{a}\text{w}\text{m}\text{a}\text{t}\text{e}\text{r}\text{i}\text{a}\text{l}\text{s}\text{a}\text{v}\text{a}\text{i}\text{l}\text{a}\text{b}\text{l}\text{e}& ?\\ ?& 0\\ \text{R}\text{a}\text{w}\text{m}\text{a}\text{t}\text{e}\text{r}\text{i}\text{a}\text{l}\text{s}\text{u}\text{s}\text{e}\text{d}& ?\\ ?& ?\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{m}\text{a}\text{n}\text{u}\text{f}\text{a}\text{c}\text{t}\text{u}\text{r}\text{i}\text{n}\text{g}costs& ?\\ ?& ?\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{w}\text{o}\text{r}\text{k}in\text{p}\text{r}\text{o}\text{c}\text{e}\text{s}\text{s}\text{i}\text{n}\text{v}\text{e}\text{n}\text{t}\text{o}\text{r}\text{y}& 0\\ \text{C}\text{o}\text{s}\text{t}of\text{g}\text{o}\text{o}\text{d}\text{s}\text{m}\text{a}\text{n}\text{u}\text{f}\text{a}\text{c}\text{t}\text{u}\text{r}\text{e}\text{d}& ?\\ ?& ?\\ \text{C}\text{o}\text{o}\text{d}\text{s}\text{a}\text{v}\text{a}\text{i}\text{l}\text{a}\text{b}\text{l}\text{e}\text{f}\text{o}\text{r}\text{s}\text{a}\text{l}\text{e}& ?\end{array}$ Prepare an income statement.

During the accounting period, Munoz purchased $$238,100$ of raw materials and issued $$248,100$ of materials to the production

department. Direct labor costs for the period amounted to $$323,300,$ and manufacturing overhead of $$47,900$ was applied to Work in

Process Inventory. Assume that there was no over$-$ or underapplied overhead. Goods costing $$611,400$ to produce were completed

and transferred to Finished Goods Inventory. Goods costing $$600,900$ were sold for $$801,400$ during the period. Selling and

administrative expenses amounted to $$70,800.$

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.