Walton Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $7,700 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 1 Job 2 Job 3 Direct Raw Materials Used $1,500 1,900 3,400 $6,800 Direct Labor $2,100 4,000 2,000 $8,100 Total 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 $10,900 cash. Walton paid $600 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. Assets Raw Material Cash Manufacturing Overhead + Work In Process Finished Goods Equity Common Retained + Stock Earnings 55,000 + Revenue Expense = Net Income 55,000 + + + + + + + + = + + = + + + + + + + = + + + + + = + + + + + + + + + + + + + + + + + + + + + + = + + + + + + + + + + + + + + + + + + + Req A and C Req D CGM Sched Req D Inc Stmt Req D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. WALTON 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 Reg D CGM Sched Req D Inc Req A and C Req D Bal Sheet Stmt Prepare an income statement for Year 1. WALTON MANUFACTURING CORPORATION Income Statement for Year 1 Req A and C Req D CGM Sched Req D Inc Stmt Req D Bal Sheet Prepare a balance sheet for Year 1. WALTON MANUFACTURING CORPORATION Balance Sheet for Year 1 Assets Total assets Equity Total equity