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

Raw Materials	$	55,200
Work in Process		82,900
Finished Goods		28,000

During the accounting period, Zachary purchased $238,100 of raw materials and issued $249,800 of materials to the production department. Direct labor costs for the period amounted to $322,300, and manufacturing overhead of $47,200 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 $601,000 were sold for $801,800 during the period. Selling and administrative expenses amounted to $71,100. 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.