Newcomb Manufacturing Company was started on January $1,$ Year $1,$ when it acquired $$3,900$ cash from the issue of common stock. During the first year of operation, $$2,700$ of direct raw materials was purchased with cash, and $$1,550$ of the materials was used to make products. Direct labor costs of $$2,900$ were paid in cash. Newcomb applied $$830$ of overhead cost to the Work in Process account. Cash payments of $$830$ were were made for actual overhead costs. The company completed products that cost $$3,500$ and sold goods that had cost $$2,720$ for $$3,900$ cash. Selling and administrative expenses of $$670$ were paid in cash.

Required

a$.$ Prepare T$-$accounts and record the events affecting Newcomb Manufacturing. Include closing entries.

b$1.$ Prepare a schedule of cost of goods manufactured and sold.

b$2.$ Prepare an income statement.

b$3.$ Prepare a balance sheet.