Rodman Corporation was created on January 1, 2014, when it recieved a stockholders contribution of $46,000. It purchased $10,500 of raw materials and worked on three job orders during the year. Data about these jobs follow. (Assume all transactions are for cash unless otherwise indicated,)

DirectRaw Materials Direct Labor

Job 1 $4,000 $4,000

Job 2 $1,800 $4,800

Job 3 $3,200 $4,800

Total $9,000 $13,000

The average wage rate is $16 per hour. Manufacturing overhead is applied using a predetermined overhead rate of $7.50 per direct labor hour. Job 1 was sold for $13,000. Rodman paid $1,400 for selling and administrative expenses. Actual factory overhead was $6,000.

a) Record the preceeding events in a horizontal statements model. The fist event for 2014 has been recorded as an example.

Assets = Equity

CASH + Raw M + MOH WIP + F.GOODS = C. STK + Ret Ear. Rev - Exp = Net Inc

46,000 NA NA NA NA 46,000 + NA NA NA NA

b) Reconcile all subsidary accounts with their respective control accounts.

c) Record the closing entry for over or underapplied manufacturing overhead, 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 2014.