Exercise 11-14A (Algo) Product cost flow and financial statements LO 11-1, 11-2, 11-3

Benson Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation.

Acquired $1,600 cash from the issue of common stock.

Paid $550 cash for direct raw materials.

Transferred $360 of direct raw materials to work in process.

Paid production employees $620 cash.

Paid $300 cash for manufacturing overhead costs.

Applied $235 of manufacturing overhead costs to work in process.

Completed work on products that cost $980.

Sold products that cost $840 for $1,610 cash.

Paid $310 cash for selling and administrative expenses.

Made a $70 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.