Adams 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 $1,800 cash from the issue of common stock. 2. Paid $560 cash for direct raw materials. 3. Transferred $390 of direct raw materials to work in process. 4. Paid production employees $600 cash. 5. Paid $310 cash for manufacturing overhead costs. 6. Applied $240 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $990. 8. Sold products that cost $850 for $1,570 cash. 9. Paid $350 cash for selling and administrative expenses. 10. Made a $80 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. Required A Required B Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Event No. Cash Manufacturing Overhead Raw Work in Materials Process Finished Goods Common Stock Retained Earnings Revenue Expense Not Income 1, $ 1,800+ + $ 1,800 2. (720) + 720+ + 3. + . (390) + 390+ 4. (600) + 600+ . 5. (310) + 310+ + 6. (240) + 240+ 7. . (990) + 990- 8a. + 8b. + + 9. (350)+ + + + 350 10. (80)+ . + . (80) " 11. + (70) + + + (70) Total $ 1,310+ $ 0+ $ 330+ $ 240+ $ 990= $ 1,800+ $ 200 $ $ 0= Prepare a schedule of cost of goods manufactured and sold. ADAMS MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 1 Beginning raw materials inventory Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cost of goods sold $ 0 0 0 0 0 0 0 $ 0