Baird Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,500 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used Direct Labor $1,500 2,200 $ 2,200 3,900 2,100 2,900 $6,600 $ 8,200 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 $10,660 cash. Baird paid $600 for selling and administrative expenses. Actual factory overhead was $5,520. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied 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 Year 1. Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Cash 70,000+ + + + + + + + Assets Equity Manufacturing Overhead Raw Material Work In Process Finished Goods Common Stock Retained Earnings Revenue Expense Net Income 70,000+ + 0+ 0= 70.000 70.000+ BAIRD MANUFACTURING CORPORATION Cost of Goods Manufactured and Sold for Year 1 Beginning raw materials inventory Purchases Raw materials available Ending raw materials inventory Raw materials used Labor Manufacturing overhead Total manufacturing costs Beginning work in process inventory Total work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods Goods available Ending finished goods Cost of goods sold 0 0 0 0 0 0 $ 0 BAIRD MANUFACTURING CORPORATION Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Net income 0 $ 0 Assets Cash BAIRD MANUFACTURING CORPORATION Balance Sheet for Year 1 Raw material inventory Work in process inventory Finished goods inventory Total assets Equity Common stock Retained earnings Total equity 69 $ 0 $ 0