Perez Manufacturing started in Year 2 with the following account balances.

Cash	$5,100
Common stock	4,266
Retained earnings	5,100
Raw materials inventory	1,200
Work in process inventory	900
Finished goods inventory (380 units @ $5.70 each)	2,166

Transactions during Year 2

Purchased $2,970 of raw materials with cash.

Transferred $3,750 of raw materials to the production department.

Incurred and paid cash for 190 hours of direct labor @ $15.90 per hour.

Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.40 per direct labor hour.

Incurred actual overhead costs of $3,300 cash.

Completed work on 1,230 units for $5.90 per unit.

Paid $1,160 in selling and administrative expenses in cash.

Sold 1,230 units for $10,300 cash revenue (assume FIFO cost flow).

1. Perez 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.

Complete this question by entering your answers in the tabs below. Record the preceding events in a horizontal statements model. The beginning balances are shown as an example. Note: Enter decreases to account balances with a minus sign