Baab Corporation is a manufacturing firm that uses job-order costhg. The company's inventory balances were as follows at the beginning and end of the year. - 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 wouid work 33.550 machine-hours and incur $271,755 in manufacturing overhead cost. The following transactions were recorded for the year: - Raw materials were purchased, $315,550. - Raw materials were requisitioned for use in production, $307,550($280,450 direct and $27,100 indirect). - The following employee costs were incurred direct labor, $377,550; indirect labor, $96.550; and administrative salaries, $172,550 - Selling costs, \$147,550. - Factory utillty costs, $10,550. - Depreciation for the year was $160,000 of which $144,000 is related to factory operations and $16,000 is related to selling. general, and administrative activities. - Manutacturing overhead was applied to jobs. The actual level of activity for the year wos 34,110 machine hours. - Sales for the year totaled $1,285,000 Required: a. Prepare a schedule of cost of goods manufactured. c. Prepare an income statement for the year, The company closes any underapplied or overapplied overhead to Cost of Goods Sold