Walton Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $8,000 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 UsedDirect LaborJob 1$ 1,400$ 2,000Job 22,4003,800Job 33,3002,100Total$ 7,100$ 7,900

Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,970 cash. Walton paid $600 for selling and administrative expenses. Actual factory overhead was $6,130.

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-1. Prepare a schedule of cost of goods manufactured and sold for Year 1.

d-2. Prepare an income statement for Year 1.

d-3. Prepare a balance sheet for Year 1.

Prepare a schedule of cost of qoods manufactured and solc