Baird Manufacturing started in Year 2 with the following account balances. Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (360 units @ $6.00 each) Transactions during Year 2 1. Purchased $2,880 of raw materials with cash. $5,700 4,620 5,700 1,600 860 2,160 2. Transferred $3,850 of raw materials to the production department. 3. Incurred and paid cash for 210 hours of direct labor $15.60 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.50 per direct labor hour. 5. Incurred actual overhead costs of $3,500 cash (HINT: recall this is the amount that will appear on the schedule of CGM and CGS). 6. Completed work on 1,290 units for $6.00 per unit. 7. Paid $1,130 in selling and administrative expenses in cash. 8. Sold 1,290 units for $9,600 cash revenue (assume FIFO cost flow). 9. Baird charges overapplied or underapplied overhead directly to Cost of Goods Sold. Required a. Record the preceding events in a horizontal statements model. The beginning balances are shown as an example. b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 2.