Ladora Construction Company began operations on January 1, 2019, when it acquired $30,000 cash from the issuance of common stock. During the year, Ladora purchased $6,000 of direct raw materials and used $5,640 of the direct materials. There were 108 hours of direct labor worked at an average rate of $20 per hour paid in cash. The predetermined overhead rate was $9 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 Materials			Direct Labor Hours
Job 1	$	1,440		30
Job 2		2,400		50
Job 3		1,800		28

The company paid $320 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $640. Ladora completed Jobs 1 and 2 and sold Job 1 for $5,000 cash. The company incurred $600 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold.

Required

1. Record the preceding events in a horizontal statements model. The first event for 2019 has been recorded as an example.

2. Reconcile all subsidiary accounts with their respective control accounts.

3. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant.

4. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019.

IT STILL SAYS ANSWER NOT COMPLETE. There are no X marks but I must be missing something on Part A. Help please!

Equity Cash + + Assets Raw Materials 0 + + = Manufacturing Overhead 0 Finished Goods + Revenue Work In Process 0 Expenses Common Stock 30,000 Retained Earnings 0 Net Income + + + 0 + 0 0 0 30,000 (6,000) 6,000 (5,640) 5,640 2,160 (2,160) ) (972) 972 320 (320) (640) 640 (2,310) (3,850) 2,310 3,850 5,000 5,000 (2,310) 2,310 5,000 (2,310) (600) 12 2,102 (600) OOOO 5,000 (2,310) (600) 12 2,102 600 12 (12) 2,898 25,280 0 + 360 2,612 + 3,850 30,000 + 5,000 LADORA CONSTRUCTION COMPANY Cost of Goods Manufactured and Sold for 2019 Beginning raw materials inventory Purchases 6,000 Raw materials available 6,000 Ending raw materials inventory 360 Raw materials used 5,640 Labor 2,160 Manufacturing overhead 960 Total manufacturing costs 8,760 Beginning work in process inventory Total work in process inventory 8,760 Ending work in process inventory 2,612 Cost of goods manufactured 6,148 Beginning finished goods inventory Goods available for sale 6,148 Ending finished goods inventory 3,850 Cost of goods sold $ 2,298 LADORA CONSTRUCTION COMPANY Income Statement for 2019 Sales revenue $ Cost of goods sold Gross margin Selling and administrative expenses 5,000 2,298 2,702 600 Net income $ 2,102 LADORA CONSTRUCTION COMPANY Balance Sheet for 2019 Assets Cash 25,280 Raw materials inventory 360 Work in process inventory 2,612 Finished goods inventory 3,850 $ $ 32,102 Total assets Equity Common stock Retained earnings $ 30,000 2,102 Total equity $ 32,102