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Solomon Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $8,200 of raw materials and worked on three job orders

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Solomon Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $8,200 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) Job Job 2 Job 3 Total Direct Raw Materials Used Direct Labor $1,5ee $ 2,000 2,400 3,900 3,200 2,200 $7,100 $ 8,100 D 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 $11.020 cash. Solomon pald $500 for selling and administrative expenses. Actual factory overhead was $5,260 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. Reg A and C Reg D CGM Reg D Inc Reg D Bal Sched Stmt Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job indi with a minus sign.) Assets Equity Manufacturing Raw Work in Finished Common Retained Cash Revenue Expense = Net Income Overhead Material Process Goods Earnings Stock 70,000 70,000+ > + Req D Bal Req A and C Reg D CGM Sched Reg D Inc Stmt Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. SOLOMON MANUFACTURING CORPORATION Cost of Goods Manufactured and Sold for Year 1 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available Cost of goods sold

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