1 Proctoring Enabled Exam ti Baab Corporations manufacturing firm that uses job-order costing. The company's inventory were th beginning and end of the year 5 Raw materiala Work in process Finished Goods 14,950 27,950 862,950 22,950 9,950 $77,950 Save & Ex 00:37:00 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,950 machine-hours and incur $302,155 in manufacturing overhead cost. The following transactions were recorded for the year Raw materials were purchased, $315,950. Raw materials were requisitioned for use in production, $307,950 ($280,050 direct and $27,900 indirect). The following employee costs were incurred: direct labor, $377,950; indirect labor, $96,950, and administrative salaries, $172,950. Selling costs, $147,950. Factory utility costs, $10,950. Depreciation for the year was $184,000 of which $173,000 is related to factory operations and $11,000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,190 machine-hours. Sales for the year totaled $1,325,000. Required: Prepare a schedule of cost of goods manufactured. Was the overhead underapplied or overapplied? By how much? Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Go Requirem Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured Direct materials: Beginning materials inventory Add: Purchases of raw materials Total raw materials available Deduct: Ending raw materials inventory 0 Total Raw materials used in production 0 Deduct: Indirect materials included in manufacturing overhead Direct materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for Deduct: Ending work in process inventory Cost of goods manufactured 0 0 0 $ 0 Complete this question by entering your answers in the table below. Required A Required B Required C Was the overhead underapplied or overapplied? By how much? < Required A Required C > Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Good Sold. Baab Corporation Income Statement Selling and administrative expenses: < Required B 0 0 0 Required C >