Chapter 11 11-1, 11-2, 11-3 Exercise 11-14A Product cost flow and financial statements Loveland Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation. 1. Acquired $2.400 cash from the issue of common stock. 2. Paid $720 cash for direct raw materials. 3. Transferred $480 of direct raw materials to work in process. 4. Paid production employees $720 cash. 5. Paid $360 cash for manufacturing overhead costs. 6. Applied $ 294 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,200. 8. Sold products that cost $960 for $1.680 cash. 9. Paid $480 cash for selling and administrative expenses. 10. Made a $60 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, Balance Sheet Income Statement Event No. Cash Assets = Equity + MOH + Raw M. + WIP + F. Goods = C. Stk. + Ret. Ear. + NA + NA + NA + NA = 2,400 + NA Rev. - Exp. = Net Inc. NA - NA = NA 1. 2,400 b. Prepare a schedule of cost of goods manufactured and sold