Thornton Manufacturing started in 2018 with the following account balances:

Cash $5,700, Common stock $5,490, Retained earnings $5,400, Raw materials inventory $1,800, Work in process inventory $890, Finished goods inventory (400 units @ $6.25 each) $2,500

Transactions during 2018:

1. Purchased $2,930 of raw materials with cash.

2. Transferred $3,840 of raw materials to the production department.

3. Incurred and paid cash for 210 hours of direct labor @ $15.80 per hour.

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

5. Incurred actual overhead costs of $3,600 cash.

6. Completed work on 1,230 units for $5.70 per unit.

7. Paid $1,140 in selling and administrative expenses in cash.

8. Sold 1,230 units for $10,000 cash revenue (assume FIFO cost flow).

9. Thornton 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) Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018.