Baab Corporation 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	$	14,750	$	22,750
Work in process	$	27,750	$	9,750
Finished Goods	$	62,750	$	77,750

• 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 33,750 machine-hours and incur $286,875 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $315,750.
• Raw materials were requisitioned for use in production, $307,750 ($280,250 direct and $27,500 indirect).
• The following employee costs were incurred: direct labor, $377,750; indirect labor, $96,750; and administrative salaries, $172,750.
• Selling costs, $147,750.
• Factory utility costs, $10,750.
• Depreciation for the year was $172,000 of which $158,000 is related to factory operations and $14,000 is related to selling, general, and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,150 machine-hours.
• Sales for the year totaled $1,305,000.

Required:

a. Prepare a schedule of cost of goods manufactured.

Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured 12:45 52 Direct materials Beginning materials inventory Add. Purchases of raw materials Total raw materials available Less Ending raw materials inventory Raw materials used in production S 14.750 288,250 x 303 000 22,750 280,250 Direct labor O Manufacturing overhead applied to work in process Total manufacturing costs Add. Beginning work in process inventory $ 280,250 377,750 290,275 948 275 27.750 976,025 9,750 $ 966,275 > Less Ending work in process inventory Cost of goods manufactured Required B >