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

During the accounting period, Zachary purchased $$239,800$ of raw materials and issued $$249,400$ of materials to the production

department. Direct labor costs for the period amounted to $$323,600,$ and manufacturing overhead of $$46,800$ was applied to Work in

Process Inventory. Assume that there was no over$-$ or underapplied overhead. Goods costing $$611,200$ to produce were completed

and transferred to Finished Goods Inventory. Goods costing $$601,200$ were sold for $$801,900$ during the period. Selling and

administrative expenses amounted to $$70,400.$

Required

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

b$1.$ Prepare a schedule of cost of goods manufactured and sold.

b$2.$ Prepare an income statement.

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ZACHARY CORPORATION

Income Statement

For the year ended Year $2$

Raw Materials $ $54,500$

Work in Process $83,500$

Finished Goods $27,800$

During the accounting period, Zachary purchased $$239,800$ of raw materials and issued $$249,400$ of materials to the production department. Direct labor costs for the period amounted to $$323,600,$ and manufacturing overhead of $$46,800$ was applied to Work in Process Inventory. Assume that there was no over$-$ or underapplied overhead. Goods costing $$611,200$ to produce were completed and transferred to Finished Goods Inventory. Goods costing $$601,200$ were sold for $$801,900$ during the period. Selling and administrative expenses amounted to $$70,400.$

Required

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

b$1.$ Prepare a schedule of cost of goods manufactured and sold.

b$2.$ Prepare an income statement.