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The following Balance Sheet was taken from the records of Adams Manufacturing Company at the beginning of Year 3 . Balance Sheet as of January

The following Balance Sheet was taken from the records of Adams Manufacturing Company at the beginning of Year 3.
Balance Sheet as of January 1, Year 2
Assets
Cash $ 9,410
Raw materials inventory 850
Work in process inventory 1,220
Finished goods inventory 2,150
Property, plant, and equipment 13,300
Accumulated depreciation 5,320
Total Assets $ 21,610
Stockholders' Equity
Common stock 8,500
Retained earnings 13,110
Total Stockholders' Equity $ 21,610
Transactions for the Accounting Period
Adams purchased $6,300 of direct raw materials and $340 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $6,000 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
By the end of the year, $5,280 of the accounts payable had been paid in cash.
During the year, direct labor amounted to 970 hours recorded in the Wages Payable account at $10.10 per hour.
By the end of the year, $8,897 of wages payable had been paid in cash.
At the beginning of the year, the company expected overhead cost for the period to be $6,324 and 1,020 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 970 for the year.
Selling and administrative expenses for the year amounted to $930 paid in cash.
Utilities and rent for production facilities amounted to $4,720 paid in cash.
Depreciation on the plant and equipment used in production amounted to $1,580.
There was $11,900 of goods completed during the year.
There was $12,600 of finished goods inventory sold for $18,500 cash.
A count of the production supplies revealed a balance of $95 on hand at the end of the year.
Any over- or underapplied overhead is considered to be insignificant.
Required
a. Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts.
b-1. Prepare a schedule of cost of goods manufactured and sold.
b-2. Prepare an income statement.
b-3. Prepare a balance sheet.

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