Vernon Manufacturing Company was started on January 1, Year 1, when it acquired $3,600 cash from the issue of common stock. During the first year of operation, $2,400 of direct raw materials was purchased with cash, and $1,400 of the materials was used to make products. Direct labor costs of $2,600 were paid in cash. Vernon applied $800 of overhead cost to the Work in Process account. Cash payments of $800 were made for actual overhead costs. The company completed products that cost $3,200 and sold goods that had cost $2,480 for $3,600 cash. Selling and administrative expenses of $640 were paid in cash.

Required

Prepare T-accounts and record the events affecting Vernon Manufacturing. Include closing entries.
Prepare a schedule of the cost of goods manufactured and sold, an income statement, and a balance sheet.

Req A
Req B CGM Sched
Req B Inc Stmt
Req B Bal Sheet
Prepare T-accounts and record the events affecting Finch Manufacturing. Include closing entries.

Prepare a schedule of the cost of goods manufactured and sold.
Prepare an income statement.
Prepare a balance sheet.