Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation.
1. Acquired $2,000 cash from the issue of common stock.
2. Paid $600 cash for direct raw materials.
3. Transferred $400 of direct raw materials to work in process.
4. Paid production employees $600 cash.
5. Paid $300 cash for manufacturing overhead costs.
6. Applied $245 of manufacturing overhead costs to work in process.
7. Completed work on products that cost $1,000.
8. Sold products that cost $800 for $1,400 cash.
9. Paid $400 cash for selling and administrative expenses.
10. Made a $50 cash distribution to the owners.
11. Closed the Manufacturing Overhead account.

Required
a. Record these events in a horizontal statements model. The first event is shown as an example.
b. Prepare a schedule of cost of goods manufactured and sold.