ABC Co. is a manufacturer. It uses job-order costing. At the beginning and end of the year, its inventory balances were as follows: Beginning Ending Balance Balance Raw materials Work in process Finished Goods $14,100 $22,100 $27,100 $ 9,100 $62,100 $77,100 . . A predetermined overhead rate is calculated based on machine-hours and then applied to jobs. At the beginning of the year, the company estimated that it would work 33,100 machine-hours and incur $238,320 in manufacturing overhead cost. ABC Co. recorded the following transactions for the year: Raw materials purchased: $315,100. Raw materials equisitioned for use in production: $307,100 ($280,900 direct and $26,200 indirect). Employee costs incurred: direct labor, $377,100; indirect labor, $96,100; and administrative salaries, $172,100. Selling costs: $147,100. Factory utility costs: $10,100. Depreciation for the year: $133,000, of which $120,200 is related to factory operations and $12,800 is related to selling, general, and administrative activities. The actual level of activity for the year was 34,020 machine-hours. Manufacturing overhead was applied to jobs throughout the year. Total sales for the year: $1,257,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Purchases of raw materials Direct materials: Beginning materials inventory Total raw materials available Baab Corporation Schedule of Cost of Goods Manufactured Total Raw materials used in production Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Required B 0 0 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 B Required C Prepare an income statement for the year. The company closes any Sold. Baab Corporation Income Statement Selling and administrative expenses