Susank Manufacturing Company was started on January 1, 2019, when it acquired $1,250 cash by issuing common stock. During its first year of operation, it purchased $250 of direct raw materials with cash and used $180 of the materials to make products. Susank paid $320 of direct labor costs in cash. The company applied $232 of overhead costs to Work in Process Inventory. It made cash payments of $232 for actual overhead costs. The company completed products that cost $520 to make. It sold goods that had cost $412 to make for $680 cash. It paid $160 of selling and administrative expenses in cash.
Required
a. Open the necessary T-accounts and record the 2019 events in the accounts. Include closing entries.
b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.
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