Munoz Manufacturing started in Year $2$ with the following account balances.

Cash $$5,500$

Common stock $3,824$

Retained earnings $5,900$

Raw materials inventory $1,500$

Work in process inventory $900$

Finished goods inventory $(320$ units @ $$5\mathrm{.}70$ each$)1,824$

Transactions during Year $2$

Purchased $$2,940$ of raw materials with cash.

Transferred $$3,840$ of raw materials to the production department.

Incurred and paid cash for $230$ hours of direct labor @ $$15\mathrm{.}40$ per hour.

Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $$16\mathrm{.}40$ per direct labor hour.

Incurred actual overhead costs of $$3,900$ cash.

Completed work on $1,240$ units for $$5\mathrm{.}50$ per unit.

Paid $$1,050$ in selling and administrative expenses in cash.

Sold $1,240$ units for $$10,300$ cash revenue $($assume FIFO cost flow$).$

Munoz 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$-1.$ Prepare a schedule of cost of goods manufactured and sold for Year $2.$

b$-2.$ Prepare an income statement for Year $2.$

b$-3.$ Prepare a balance sheet for Year $2.$