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

Raw Materials	$	54,000
Work in Process		82,500
Finished Goods		27,300

During the accounting period, Munoz purchased $239,200 of raw materials and issued $249,100 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,500 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,100 were sold for $801,700 during the period. Selling and administrative expenses amounted to $70,600.

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

Raw Materials	$	54,000
Work in Process		82,500
Finished Goods		27,300

During the accounting period, Munoz purchased $239,200 of raw materials and issued $249,100 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,500 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,100 were sold for $801,700 during the period. Selling and administrative expenses amounted to $70,600. Required

1. Prepare an income statement.

Sales Revenue
Net Income