Fanning Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation.
Acquired $1,900 cash from the issue of common stock.
Paid $540 cash for direct raw materials.
Transferred $430 of direct raw materials to work in process.
Paid production employees $630 cash.
Paid $380 cash for manufacturing overhead costs.
Applied $230 of manufacturing overhead costs to work in process.
Completed work on products that cost $1,060.
Sold products that cost $870 for $1,600 cash.
Paid $350 cash for selling and administrative expenses.
Made a $90 cash distribution to the owners.
Closed the Manufacturing Overhead account.
Required
Record these events in a horizontal statements model. The first event is shown as an example.
Prepare a schedule of cost of goods manufactured and sold.