Problem 11-19A Manufacturing cost flow for one-year period Blanding Manufacturing started in Year 1 with the following account balances. Transactions during Year 1 1. Purchased $6 , 000 of raw materials with cash. 2. Transferred $7 , 500 of raw materials to the production department. 3. Incurred and paid cash for 180 hours of direct labor @$32 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $33.00 per direct labor hour. 5. Incurred actual overhead costs of $6 , 000 cash. 6. Completed work on 1,200 units for $12.80 per unit. 7. Paid $2 , 800 in selling and administrative expenses in cash. 8. Sold 1,200 units for $19 , 200 cash revenue (assume FIFO cost flow). 9. Blanding 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 Year I. .

1. Problem 11-19A Manufacturing cost flow for one-year period Blanding Manufacturing started in
Year 1 with the following account balances. Transactions during Year 1 1. Purchased $6 , 000 of
raw materials with cash. 2. Transferred $7 , 500 of raw materials to the production department. 3.
Incurred and paid cash for 180 hours of direct labor @$32 per hour. 4. Applied overhead costs to
the Work in Process Inventory account. The predetermined overhead rate is $33.00 per direct
labor hour. 5. Incurred actual overhead costs of $6 , 000 cash. 6. Completed work on 1,200 units
for $12.80 per unit. 7. Paid $2 , 800 in selling and administrative expenses in cash. 8. Sold 1,200
units for $19 , 200 cash revenue (assume FIFO cost flow). 9. Blanding 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
Year I.