Problem 12-13A Job-order costing system Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used Direct Labor Job 1 $ 2,800 Job 2 4,000 $ 6,000 8,000 Job 3 6,000 4,000 Total $12,800 $18,000 Page 574 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. Balance Sheet Assets Stk. Equity Income Statement Cash Raw M. MOH + WIP + F. Goods C. Stk. + Ret. Ear. Rev. Exp. = Net Inc. - 60,000+ NA + NA + NA + NA = 60,000 + NA NA - NA = NA b. Reconcile all subsidiary accounts with their respective control accounts. 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. LO 12-2 Check Figure d. COGM: $6,148 Total assets: $32,102