Newton Advertisements Corporation designs and produces television commercials for clients. On March 1, 2019, the company issued common stock for $100,000 cash. During March, Newton worked on three jobs. Pertinent data follow: Special Orders Materials Labor Job 301............................................. $4,500...................... 450 hours @ $32 per hour Job 302............................................... 7,600.......................... 360 hours @ $60 per hour Job 303............................................... 6,100........................ 680 hours @ $28 per hour

Actual production overhead cost: $24,080 Predetermined overhead rate: $16 per direct labor hour

Newton paid these costs in cash. Jobs 301 and 302 were completed and sold for cash to customers during March. Job 303 was incomplete at month end. Job 301 sold for $32,000, and Job 302 sold for $45,000. Newton also paid $8,000 cash in March for selling and administrative expenses.

Newton uses a just in time inventory management system. Consequently, it has no raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

A. Use a horizontal financial statements model, to record Newton's accounting events for March 2019. (Example shown below)

b. Record the entry to close the amount of under applied or over applied overhead to Cost of Goods Sold (in the expense category) in the horizontal financial statements model.

c. Determine the gross margin for March

Assets Work In Finlshed Manuf. Com. Cash + Process + Goods + Overhead = Stock + Ear. Rev. - Exp. = Net Inc. NA NA 37,800 + NA + NA + NA 37,800 + NA|