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 Work in process Finished Goods $ 14,700 $ 27,700 $ 62,700 $ 22,700 $9,700 $ 77,700 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 33,700 machine-hours and incur $283,080 in manufacturing overhead cost. The following transactions were recorded for the year Raw materials were purchased, $315,700 Raw materials were requisitioned for use in production, $307,700 ($280,300 direct and $27,400 indirect) The following employee costs were incurred: direct labor, $377,700, indirect labor, $96,700, and administrative salaries, $172,700 Selling costs, $147,700. Factory utility costs, $10,700. Depreciation for the year was $169,000 of which $154,000 is related to factory operations and $15,000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,140 machine-hours Sales for the year totaled $1,300,000. 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