Product cost flow and financial statements Joiner Manufacturing Company was started on January 1, 2011. The company was affected by the following events during its first year of operation.

1. Acquired $1,600 cash from the issue of common stock.

2. Paid $500 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.

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Assets Equity Raw M. + WIP + F. Goods - Rev. C. Stk. + Ret. Ear. 1,600 + Net Inc. + MOH + Exp. NA Cash NA + NA NA NA NA 1,600 %3D NA NA