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

Raw Materials	$	54,600
Work in Process		83,500
Finished Goods		26,100

During the accounting period, Zachary purchased $239,300 of raw materials and issued $249,600 of materials to the production department. Direct labor costs for the period amounted to $322,200, and manufacturing overhead of $48,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,900 to produce were completed and transferred to Finished Goods Inventory. Goods costing $602,000 were sold for $801,000 during the period. Selling and administrative expenses amounted to $72,000.

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.