Manufacturing cost flow for one-year period Fulton Manufacturing started 2011 with the following account balances.

Transactions during 2010
1. Purchased $2,880 of raw materials with cash.
2. Transferred $3,750 of raw materials to the production department.
3. Incurred and paid cash for 180 hours of direct labor @ $16 per hour.
4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.50 per direct labor hour.
5. Incurred actual overhead costs of $3,000 cash.
6. Completed work on 1,200 units for $6.40 per unit.
7. Paid $1,400 in selling and administrative expenses in cash.
8. Sold 1,200 units for $9,600 cash revenue (assume FIFO cost flow). Fulton charges overapplied or underapplied overhead directly to Cost of Goods Sold.
Required
a. Record the preceding events in a horizontal statements model. The beginning balances are shown as an example.

b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2011.

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Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (320 units @$6.25) $5,000 4,500 4,500 1,200 800 2,000