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

Raw Materials	$	54,700
Work in Process		83,300
Finished Goods		27,800

During the accounting period, Vernon purchased $238,100 of raw materials and issued $248,400 of materials to the production department. Direct labor costs for the period amounted to $323,300, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,200 were sold for $800,900 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.

Req A Req B CGM Sched Req B Inc Stmt 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 - Reg A Req B CGM Sched > VERNON 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 Req A Req B CGM Sched Req B Inc Stmt Prepare an income statement. VERNON CORPORATION Income Statement For the year ended Year 2