Upcott Manufacturing Company started 2014 with the following balances in its inventory accounts: Raw Materials, $2,500; Work in Process, $3,000; Finished Goods, $3,300. During 2014, Upcott purchased $17,000 of raw materials and issued $16,500 of materials to the production department. It incurred $19,000 of direct labor costs and applied manufacturing overhead of $18,700 to Work in Process Inventory. Assume there was no over- or underapplied overhead at the end of the year. Upcott completed goods costing $52,500 to produce and transferred them to finished goods inventory. During the year, Upcott sold goods costing $50,700 for $76,900. Selling and administrative expenses for 2014 were $18,000.

Required
a. Using T-accounts, determine the ending balance Upcott would report for each of the three inventory accounts that would appear on the December 31, 2014, balance sheet.
b. Prepare the 2014 schedule of cost of goods manufactured and sold and the 2014 income statement.