6)

Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:

	Beginning Balance			Ending Balance
Raw materials	$	11,600		$	15,000
Work in process	$	32,800		$	14,500
Finished goods	$	104,000		$	124,000

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 17,800 machine-hours and incur $267,000 in manufacturing overhead cost. The following transactions were recorded for the year:

	Raw materials were purchased, $412,000.
	Raw materials were requisitioned for use in production, $408,600 ($379,000 direct and $29,600 indirect).
	The following employee costs were incurred: direct labor, $336,000; indirect labor, $73,000; and administrative salaries, $154,000.
	Selling costs, $110,000.
	Factory utility costs, $20,000.
	Depreciation for the year was $123,000 of which $110,000 is related to factory operations and $13,000 is related to selling, general, and administrative activities.
	Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,100 machine-hours.
	Sales for the year totaled $1,284,000.

Required:
a.	Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "$" sign in your response.)

Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select) Beginning raw materials inventory Beginning work in process inventory Beginning finished goods inventory Ending work in process inventory Ending raw materials inventory	$
(Click to select) Add Deduct : (Click to select) Beginning work in process inventory Finished goods inventory, beginning Purchases of raw materials Ending work in process inventory Raw materials inventory, ending
Total raw materials available
(Click to select) Add Deduct : (Click to select) Beginning raw materials inventory Beginning work in process inventory Ending work in process inventory Ending raw materials inventory Purchases of raw materials
Raw materials used in production
(Click to select) Deduct Add : (Click to select) Direct labor Indirect labor Indirect materials included in manufacturing overhead Raw materials inventory, beginning Direct materials
(Click to select) Purchases of raw materials Ending work in process inventory Raw materials inventory, beginning Direct labor Raw materials inventory, ending
(Click to select) Raw materials inventory, beginning Purchases of raw materials Raw materials inventory, ending Manufacturing overhead cost applied to work in process Direct labor
Total manufacturing cost
(Click to select) Deduct Add : (Click to select) Raw materials inventory, beginning Raw materials inventory, ending Purchases of raw materials Ending work in process inventory Beginning work in process inventory
(Click to select) Deduct Add : (Click to select) Raw materials inventory, ending Ending work in process inventory Beginning work in process inventory Purchases of raw materials Raw materials inventory, beginning
Cost of goods manufactured		$

b.	Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value. Omit the "$" sign in your response.)

Manufacturing overhead (Click to select) overapplied underapplied

$

c.	Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (Input all amounts as positive values. Omit the "$" sign in your response.)