Franklin Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, Year 2, the company had the following account balances: $86,000 for both cash and common stock. In Year 2, Franklin worked on three jobs. The relevant direct operating costs follow. Job 1 Job 2 Job 3 Direct Labor $ 4,200 2,600 8,400 $ 15,200 Direct Materials $ 4,900 1,700 4,000 $ 10,600 Total Franklin's predetermined manufacturing overhead rate was $0.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $5,826. Franklin paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $16,600 cash and Job 2 for $8,300 cash. Franklin also paid $3,400 cash for selling and administrative expenses for the year. Franklin uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Record the preceding events in a horizontal statements model. The first row shows beginning balances. b. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. c. Determine the gross margin for the year. Req A and B Reg C Record the preceding events in a horizontal statements model. The first row shows beginning balances. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. (Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Show less Cash Assets Work in Finished + Process Goods + + Manufacturing Overhead Equity Common Retained Stock * Earnings 86,000+ Revenue - Expense = Net Income + + 86,000 + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + = + + + + = + + + + + + + + + + + + + + + + + + + + + + + + + + + + + = + 86,000 + 0 0 + 0 + 0= 86,000+ 0 01 0-| 0 = 0 Complete this question by entering your answers in the tabs below. Reg A and B Reg C Determine the gross margin for the year. Gross margin Complete this question by entering your answers in the tabs below. Reg A and B Reg C Determine the gross margin for the year. Gross margin