The following accounting events affected Baird Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions.

Transactions for Year $1$

Started manufacturing company by issuing common stock for $$3,100.$

Purchased $$1,290$ of direct raw materials.

Used $$730$ of direct raw materials to produce inventory.

Paid $$340$ of direct labor wages to employees to make inventory.

Applied $$300$ of manufacturing overhead cost to Work in Process Inventory.

Finished work on inventory that cost $$940.$

Sold goods that cost $$630$ for $$1,130.$

Paid $$360$ for selling and administrative expenses.

Actual manufacturing overhead cost amounted to $$217$ for the year.

Transactions for Year $2$

Acquired additional $$1,200$ of cash from common stock.

Purchased $$1,200$ of direct raw materials.

Used $$1,270$ of direct raw materials to produce inventory.

Paid $$560$ of direct labor wages to employees to make inventory.

Applied $$310$ of manufacturing overhead cost to Work in Process Inventory.

Finished work on inventory that cost $$1,840.$

Sold goods that cost $$1,520$ for $$2,810.$

Paid $$450$ for selling and administrative expenses.

Actual manufacturing overhead cost amounted to $$360$ for the year.

Transactions for Year $3$

Paid a cash dividend of $$700.$

Purchased $$1,430$ of direct raw materials.

Used $$1,120$ of direct raw materials to produce inventory.

Paid $$390$ of direct labor wages to employees to make inventory.

Applied $$300$ of manufacturing overhead cost to work in process.

Finished work on inventory that cost $$2,010.$

Sold goods that cost $$2,270$ for $$3,540.$

Paid $$660$ for selling and administrative expenses.

Annual manufacturing overhead costs were $$230$ for the year.

Required

a$.$c$.$&d$.$ Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. In Year $1,$ the first event is shown as an example.

b$.$&d$.$ Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet as of the close of business on December $31,$ Year $1,$ Year $2$ and Year $3.$