Check my work 2 Franklin Construction Company began operations on January 1, Year 1, when it acquired $20,000 cash from the issuance of common stock. During the year, Franklin purchased $2,900 of direct raw materials and used $2,600 of the direct materials. There were 110 hours of direct labor worked at an average rate of $7 per hour paid in cash. The predetermined overhead rate was $2.00 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. 20 points Direct Materials $ 600 1,000 1,000 Job 1 Job 2 Job 3 Direct Labor Hours 28 52 30 eBook References The company paid $57 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $145. Franklin completed Jobs 1 and 2 and sold Job 1 for $1,512 cash. The company incurred $170 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. Complete this question by entering your answers in the tabs below. 2 Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assumi amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jobs in total. When entering cost data, please combine all job raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to account balances with a minus sign.) 20 points Assets Raw Materials Manufacturing Overhead Cash Work In Process Finished Goods E Equity Common Retained Stock Earnings 20,000 + Revenue Expenses = Net Income eBook 20,000 + + = References + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + 20,000 + 0 + 0 + 0 + 0 = 20,000 + 0 0 0 = 0 Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. FRANKLIN CONSTRUCTION COMPANY Cost of Goods Manufactured and Sold for Year 1 Raw materials available 0 Raw materials used 0 Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available for sale 0 Cost of goods sold $ 0 completeu JUUSI anu z alu SOIU JOU ITUL DIUIZ CASI. Te company incunEU DITU UI SEHy allu aun SLI alive Expenses liial weie 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. Complete this question by entering your answers in the tabs below. Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. FRANKLIN CONSTRUCTION COMPANY Income Statement for Year 1 0 $ 0 Complete this question by entering your answers in the tabs below. Reg A and C Reg D CGM Sched Req D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for Year 1. FRANKLIN CONSTRUCTION COMPANY Balance Sheet for Year 1 Assets Total assets $ 0 Equity Total equity $ 0
