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

Raw Materials	$	55,000
Work in Process		82,100
Finished Goods		27,100

During the accounting period, Rundle purchased $238,900 of raw materials and issued $248,700 of materials to the production department. Direct labor costs for the period amounted to $323,300, and manufacturing overhead of $46,200 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,500 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,100 were sold for $801,200 during the period. Selling and administrative expenses amounted to $72,000. 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.