Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials and worked on three job orders during 2019 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.)
Direct Raw Materials Used Direct Labor
Job 1............................................................ $ 2,800.................. $ 6,000
Job 2............................................................... 4,000.................... 8,000
Job 3............................................................... 6,000................... 4,000
Total............................................................ $12,800................. $18,000
Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300.
Required
a. Record the preceding events in a horizontal statements model. The first event for 2019 has been recorded as an example.

b. Reconcile all subsidiary accounts with their respective control accounts.
c. Record the closing entry for over- or under applied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant.
d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019.

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Assets Equity Cash + Raw M. + MOH + WIP + F.Goods C.Stk. + Ret. Ear. Rev. - Exp. Net Inc. $60,000+ NA + NA + NA + NA = $60,000+ NA NA - NA NA