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

Raw Materials	$ 54,900
Work in Process	82,400
Finished Goods	26,300

During the accounting period, Perez purchased $240,000 of raw materials and issued $249,600 of materials to the production department. Direct labor costs for the period amounted to $322,200, and manufacturing overhead of $46,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,900 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,500 were sold for $800,400 during the period. Selling and administrative expenses amounted to $71,700.

Required

a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.

b1. Prepare a schedule of cost of goods manufactured and sold.

b2. Prepare an income statement.

Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.

	Ending Balance
Raw materials
Work in process
Finished goods

Prepare a schedule of cost of goods manufactured and sold.

PEREZ CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended Year 2
Raw materials available
Raw materials used
Total manufacturing costs
Total work in process inventory
Cost of goods manufactured
Goods available for sale
Cost of goods sold

Prepare an income statement.

PEREZ CORPORATION
Income Statement
For the year ended Year 2