Zachary Manufacturing Corporation was started with the issuance of common stock for $75,000. It purchased $7,300 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 Total Direct Raw Materials Used Direct Labor $1,300 $ 2,000 2,100 3,800 2,900 1,800 $6,300 $ 7,600 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 $9,760 cash. Zachary paid $500 for selling and administrative expenses. Actual factory overhead was $5.620. 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. Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Raw Material Work In Process Finished Goods Equity Common . Retained Stock Earnings 75,000 + Revenue - Expense Cash - Manufacturing, Overhead 75,000 + = Net Income + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + 75,000 + + + 75,000 + Reg A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. ZACHARY 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 Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. ZACHARY MANUFACTURING CORPORATION Income Statement for Year 1 Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for Year 1. ZACHARY MANUFACTURING CORPORATION Balance Sheet for Year 1 Assets Total assets Equity Total equity