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

Raw Materials	$	54,700
Work in Process		82,400
Finished Goods		26,700

During the accounting period, Zachary purchased $238,400 of raw materials and issued $249,400 of materials to the production department. Direct labor costs for the period amounted to $322,900, and manufacturing overhead of $47,900 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 $602,000 were sold for $801,800 during the period. Selling and administrative expenses amounted to $70,300.

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.