Fanning Construction Company began operations on January 1, Year 1, when it acquired $16.000 cash from the issuance of common stock. During the year, Fanning purchased $2,800 of direct raw materials and used $2,700 of the direct materials. There were 110 hours of direct labor worked at an average rate of $6 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. Job 1 Job 2 Job 3 Direct Materials $ 700 1,000 1,000 Direct Labor Hours 28 50 32 The company paid $60 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $254. Fanning completed Jobs 1 and 2 and sold Job 1 for $1,622 cash. The company incurred $150 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. Req D CGM Req A and C Reg D Inc Req D Bal Sched Stmt Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufac amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jol raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to a Assets Raw Materials Manufacturing Overhead Cash Work In Process Finished Goods Equity Common Retained Stock Earnings 16,000 + Revenue Expe 16,000+ IIIIIII + Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufac amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jol raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to a Manufacturing Overhead Assets Raw Materials Work In Process Cash 16,000+ Finished Goods Equity Common Retained Stock Earnings 16.000 Revenue - Expe ++++ IIIIII TTTTT 16,000+ 0 0 0 0 16,000 0 closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the example. (Record each cost category for the jobs in total. When entering cost data, please combine all job costs of direct one entry for each job. Enter any decreases to account balances with a minus sign.) Show less Equity Common Retained Stock Revenue Expenses = Net Income Earnings 16,000+ III + + + + + + + + + + ++ 16,000 + 0 = 0 Req A and C Req D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. FANNING 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 Req A and C Req D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. FANNING CONSTRUCTION COMPANY Income Statement for Year 1 0 $ 0 Req A and C Req D CGM Sched Reg D Inc Stmt Req D Bal Sheet Prepare a balance sheet for Year 1. FANNING CONSTRUCTION COMPANY Balance Sheet for Year 1 Assets Total assets $ 0 Equity Total equity $ 0 Fanning Construction Company began operations on January 1, Year 1, when it acquired $16.000 cash from the issuance of common stock. During the year, Fanning purchased $2,800 of direct raw materials and used $2,700 of the direct materials. There were 110 hours of direct labor worked at an average rate of $6 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. Job 1 Job 2 Job 3 Direct Materials $ 700 1,000 1,000 Direct Labor Hours 28 50 32 The company paid $60 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $254. Fanning completed Jobs 1 and 2 and sold Job 1 for $1,622 cash. The company incurred $150 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. Req D CGM Req A and C Reg D Inc Req D Bal Sched Stmt Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufac amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jol raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to a Assets Raw Materials Manufacturing Overhead Cash Work In Process Finished Goods Equity Common Retained Stock Earnings 16,000 + Revenue Expe 16,000+ IIIIIII + Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufac amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jol raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to a Manufacturing Overhead Assets Raw Materials Work In Process Cash 16,000+ Finished Goods Equity Common Retained Stock Earnings 16.000 Revenue - Expe ++++ IIIIII TTTTT 16,000+ 0 0 0 0 16,000 0 closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the example. (Record each cost category for the jobs in total. When entering cost data, please combine all job costs of direct one entry for each job. Enter any decreases to account balances with a minus sign.) Show less Equity Common Retained Stock Revenue Expenses = Net Income Earnings 16,000+ III + + + + + + + + + + ++ 16,000 + 0 = 0 Req A and C Req D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. FANNING 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 Req A and C Req D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. FANNING CONSTRUCTION COMPANY Income Statement for Year 1 0 $ 0 Req A and C Req D CGM Sched Reg D Inc Stmt Req D Bal Sheet Prepare a balance sheet for Year 1. FANNING CONSTRUCTION COMPANY Balance Sheet for Year 1 Assets Total assets $ 0 Equity Total equity $ 0