Rundle Construction Company began operations on January 1, Year 1, when it acquired $10,000 cash from the issuance of common stock. During the year, Rundle purchased $2,900 of direct raw materials and used $2,700 of the direct materials. There were 114 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $4.00 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. Job 1 Job 2 Job 3 Direct Materials $ 700 1,100 900 Direct Labor Hours 32 52 30 The company paid $56 cash for indirect labor costs. Actual overhead cost paid in cash other than ind or was $390. Rundle completed Jobs 1 and 2 and sold Job 1 for $1,724 cash. The company incurred $160 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. 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. Req A and C Rey V LUI Sched Stmt ney Dai Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements m amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each cost category for the jobs in total. When entering cost data, please com raw materials, direct labor, and manufacturing overhead respectively into one entry for each job. Enter any decreases to account balances with a minus sign.) Cash Manufacturing Overhead Assets Raw Materials Work In Process Finished Goods Equity Common Retained Stock Earnings 10,000 Revenue Expenses = Net Income 10,000 = + + + + + + + + + + + + + 10,000 0- 0 0 = 10,000 0 0 0