Loveland Manufacturing Company was started on January 1, 2018. 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 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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