Transactions for the Accounting Period 1. Solomon purchased $6,000 of direct raw materials and $380 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,700 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. 2. By the end of the year, $5,310 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 990 hours recorded in the Wages Payable account at $10.50 per hour. 4. By the end of the year, $9,495 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $6,448 and 1,040 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 990 for the year. 6. Selling and administrative expenses for the year amounted to $910 paid in cash. 7. Utilities and rent for production facilities amounted to $4,710 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,530. 9. There was $11,400 of goods completed during the year. 10. There was $12,450 of finished goods inventory sold for $19,000 cash. 11. A count of the production supplies revealed a balance of $94 on hand at the end of the year. 12. Any over-or underapplied overhead is considered to be insignificant. 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