12-13B - Preston Corp. was creatd on January 1, Year 1. It received a stockholders contribution of $92,000. It purchased $21,000 of raw materials and worked on three job orders during the year. Data about these jobs follow. (assume all transactions are for cash unless otherwise indicated.)

Job Direct Raw Materials Used direct labor

job 1 $8,000 $8,000

Job 2 3,600 9,600

Job 3 6,400 8,960

Total 18,000 26,560

The average wage rate is 32 dollars per hour. manufacturing overhead is applied using a predeterined overhead rate of 15 per direct labor hour. jobs 1 and 3 were completed during the year, and Job 1 was sold for 26000. preston paid 2800 for selling and admistrative expenses. actual factory overhead was 12000.

A: required: record the events in a horizontal statement model the first even for year 1 has been recorded as an example

balance sheet income statement

cash + aw m + MOH + wip + F. Goods = c.stk. + Retain Earn rev - Exp = net Inc

B: reeconcile all subsidiary accounts with their respective control accounts.

C: record the closing entry for over or underapplied manufacturing ocverhead , assuming that the amount is significant

D: prepare a schedule of cost of goods manufactured and sold, an income statement , and a balance sheet for Year 1 .