Solomon Corporation began fiscal year 2018 with the following balances in its inventory accounts:

Raw Materials	$	54,200
Work in Process		83,800
Finished Goods		28,000

During the accounting period, Solomon purchased $238,100 of raw materials and issued $248,600 of materials to the production department. Direct labor costs for the period amounted to $322,500, and manufacturing overhead of $47,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,700 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,000 were sold for $800,700 during the period. Selling and administrative expenses amounted to $71,500.

Required

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

b. Prepare a schedule of cost of goods manufactured and sold and an income statement.

	Ending Balance
Raw materials
Work in process
Finished goods

SOLOMON CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended 2018
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

SOLOMON CORPORATION
Income Statement
For the year ended 2018