Fenske Construction Company began operations on January 1, 2012, when it acquired $10,000 cash from the issuance of common stock. During the year, Fenske purchased $2,600 of direct raw materials and used $2,400 of the direct materials. There were 108 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $3.00 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.

The company paid $100 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $240. Fenske completed Jobs 1 and 2 and sold Job 1 for $1,600 cash. The company incurred $150 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 2012 has been recorded as an example.

b. Reconcile all subsidiary accounts with their respective control accounts.
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 2012.

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Direct Materials Direct Labor Hours Job 1 Job 2 Job 3 $ 600 1,000 800 30 50 28