Exercise $12-6$A $($Algo$)$ Job$-$order costing in a manufacturing company LO $12-2$

Jordan Corporation makes custom$-$order furniture to meet the needs of persons with disabilities. On January $1,$ Year $2,$ the company

had the following account balances: $$90,000$ for both cash and common stock. In Year $2,$ Jordan worked on three jobs. The relevant

direct operating costs follow.

Jordan's predetermined manufacturing overhead rate was $$0\mathrm{.}40$ per direct labor dollar. Actual manufacturing overhead costs

amounted to $$6,146.$ Jordan paid cash for all costs. The company completed and delivered Jobs $1$ and $2$ to customers during the year.

Job $3$ was incomplete at the end of the year. The company sold Job $1$ for $$17,000$ cash and Job $2$ for $$8,200$ cash. Jordan also paid

$$3,100$ cash for selling and administrative expenses for the year.

Jordan uses a just$-$in$-$time inventory management system. Consequently, it does not have raw materials inventory. Raw materials

purchases are recorded directly in the Work in Process Inventory account.

Required

a$.$ Record the preceding events in a horizontal statements model. The first row shows beginning balances.

b$.$ Record the entry to close the amqunt of underapplied or overapplied overhead for the year to Cost of Goods Sold $($in the expense

category$)$ in the horizontal financial statements model.

c$.$ Determine the gross margin for the year.

Complete this question by entering your answers in the tabs below.

a$.$ Record the preceding events in a horizontal statements model. The first row shows beginning balances.

b$.$ Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold $($in the expense category$)$ in the horizontal finan

Note: Enter direct labor, direct materials, and applied overhead costs for each job individually. Enter any decreases to account balances with a minus sign.