Check my wa Rooney Construction Company began operations on January 1, Year 1, when it acquired $16,000 cash from the issuance of common stock. During the year, Rooney purchased $2,600 of direct raw materials and used $2,500 of the direct materials. There were 106 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $3.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building. Direct Labor Job 1 Job 2 Job 3 Direct Materials Hours $ 600 30 1,000 900 46 30 The company paid $56 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $246. Rooney completed Jobs 1 and 2 and sold Job 1 for $1,560 cash. The company incurred $130 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold. 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.