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Munoz Manufacturing Company was started on January 1, 2018. The company was affected by the following events during its first year of operation:

Acquired $1,700 cash from the issue of common stock.

Paid $540 cash for direct raw materials.

Transferred $420 of direct raw materials to work in process.

Paid production employees $650 cash.

Paid $370 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 $820 for $1,630 cash.

Paid $400 cash for selling and administrative expenses.

Made a $70 cash distribution to the owners.

Closed the Manufacturing Overhead account.

Required

Record these events in a horizontal statements model. The first event is shown as an example.

Prepare a schedule of cost of goods manufactured and sold.

Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.)

Assets = Equity Event No. Cash + Manufacturing Overhead + Raw Materials + Work in Process + Finished Goods = Common Stock + Retained Earnings Revenue Expense = Net Income 1. $1,700 + + + + = $1,700 + = 2. (540) + + 540 + + = + = 3. + + (420) + 420 + = + = 4. (650) + + + 650 + = + = 5. (370) + 370 + + + = + = 6. + (220) + + + = + = 7. + + + (1,070) + 1,070 = + = 8a. 1,630 + + + + = + 1,630 1,630 = 1,630 8b. + + + + (820) = + (820) 820 = (820) 9. (400) + + + + = + (400) 400 = (400) 10. (70) + + + + = + (70) = 11. + (150) + + + = + (150) 150 = (150) Total $1,300 + $0 + $120 + $0 + $250 = $1,700 + $190 $1,630 $1,370 = $260

Prepare a schedule of cost of goods manufactured and sold.

	MUNOZ MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 2018 Raw materials available 0 Raw materials used 0 Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Cost of goods available for sale 0 Cost of goods sold $0

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