On December 31, Year 1, Zeus Manufacturing Reported the Following

Essay

On December 31, Year 1, Zeus Manufacturing reported the following balances in its inventory accounts:
$\begin{array}{llr} \text { Account}&\text { Balance}\\ \text { Raw materials inventory} &\$21,000\\ \text { Work in process inventory } &32,500\\ \text { Finished goods inventory } &36,500\end{array}$
The following events occurred during Year 2:purchased raw materials for cash, $375,000raw materials used to make products, $359,500direct labor costs of $204,000 were paid in cashpaid cash for actual overhead costs, $180,500completed products that cost $704,500sold goods that had cost $696,000 for $985,000 cashpaid cash for selling and administrative expenses, $206,000Required:Prepare Zeus' schedule of cost of goods manufactured and sold for Year 2.Prepare the income statement for Year 2.Calculate the balances in the Raw Materials, Work in Process, and Finished Goods Inventory accounts as of December 31, Year 2.