Check my work Benson Construction Company began operations on January 1, Year 1, when it acquired $14,000 cash from the issuance of common stock. During the year, Benson purchased $2,500 of direct raw materials and used $2,300 of the direct materials. There were 106 hours of direct labor worked at an average rate of $6 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. Job 1 Job 2 Job 3 Direct Materials $ 500 900 900 Direct Labor Hours 26 50 30 The company paid $48 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $150. Benson completed Jobs 1 and 2 and sold Job 1 for $1,378 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. Check my work Complete this question by entering your answers in the tabs below. Reg A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal : 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 dat raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to account balances with a minus sign Assets Raw Materials Cash Manufacturing Overhead 14.000 + Work In Process Finished Goods Equity Common Retained Stock Earnings 14.000 + Revenue Expenses = Net Income + + + + +1 + + + + + 1 Check my work Prepare a schedule of cost of goods manufactured and sold for Year 1. BENSON 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 $ Check my work Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. BENSON CONSTRUCTION COMPANY Income Statement for Year 1 Sales revenue 0 0 Check my work Reg A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for Year 1. BENSON CONSTRUCTION COMPANY Balance Sheet for Year 1 Assets $ 0 Total assets Equity Total equity