Thornton Manufacturing Corporation was started with the issuance of common stock for $50,000. It purchased $7,400 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.)

Direct Raw Materials UsedDirect LaborJob 1$1,300$2,000Job 21,9003,700Job 33,2002,100Total$6,400$7,800

Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,470 cash. Thornton paid $400 for selling and administrative expenses. Actual factory overhead was $6,060.

1. Please prepare schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.