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

Acquired $$1,900$ cash from the issue of common stock.

Paid $$580$ cash for direct raw materials.

Transferred $$430$ of direct raw materials to work in process.

Paid production employees $$640$ cash.

Paid $$360$ cash for manufacturing overhead costs.

Applied $$220$ of manufacturing overhead costs to work in process.

Completed work on products that cost $$1,070.$

Sold products that cost $$860$ for $$1,640$ cash.

Paid $$360$ 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.