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

of operation.

Acquired $$2,600$ cash from the issue of common stock.

Paid $$530$ cash for direct raw materials.

Transferred $$390$ of direct raw materials to work in process.

Paid production employees $$630$ cash.

Paid $$320$ cash for manufacturing overhead costs.

Applied $$225$ of manufacturing overhead costs to work in process.

Completed work on products that cost $$1,020.$

Sold products that cost $$880$ for $$1,630$ cash.

Paid $$330$ cash for selling and administrative expenses.

Made a $$70$ cash distribution to the owners.

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.