On December 31, Year 1, Zeus Manufacturing reported the following balances in its inventory accounts The following events occurred during Year 2: a. Purchased raw materials for cash, $375,000. b. Raw materials used to make products, $359,500. c. Direct labor costs of $204,000 were paid in cash. d. Paid cash for actual overhead costs, $180,500. e. Completed products that cost $704,500. f. Sold goods that had cost $696,000 for $985,000 cash. g. Paid cash for selling and administrative expenses, $206,000. 1. Prepare a schedule of cost of goods manufactured and sold for year 2. - Calculate the cost of goods manufactured (completed) for year 2. - Calculate cost of goods sold for year 2. 2. Prepare the income statement for year 2 . 3. Calculate the ending inventory balances (RM, WIP, FG) at 12/31/year2. Beginning Raw Material Inventory Plus materials purchased Cost of materials available Less materials used Ending Raw Material Inventory Beginning WIP Inventory Direct materials used this period Direct labor cost this period MOH incurred this period Current period manufacturing costs Total manufacturing costs Less cost of completed Ending WIP Beginning finished goods inventory Add cost of goods manufactured Cost of goods available for sale Less cost of goods sold Ending finished goods inventory Total Ending Inventory Revenues Less cost of goods sold Gross margin (or gross profit) Less SG\&A expenses Net Income