Lugar Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $37,800 for both cash and common stock. In 2018, Lugar worked on three jobs. The relevant direct operating costs follow:

	Direct Labor	Direct Materials
Job 1	$3,000	$2,000
Job 2	1,400	700
Job 3	4,100	1,800
Total	$8,500	$4,500

Lugar's predetermined manufacturing overhead rate was $0.50 per direct labor dollar. Actual manufacturing overhead costs amounted to $4,200. Lugar 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 $9,250 cash and Job 2 for $4,930. Lugar also paid $2,000 cash for selling and administrative expenses for the year.

Lugar 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.

A) Record the preceding events in a horizontal statements model. The first row shows beginning balances.

Net Revenue - Expense = Income Equity Earnings Common. Retained Stock 37,800 + + + + + + + + + + + + + Overhead Finished . Manufacturing Assets Goods + + + + + + + + + + + + + + + + + + + + + + + + + Work in Process + + + + + + + + + + + + + Cash 37,800