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	$ 14,800	$ 22,800
Work in process	$ 27,800	$ 9,800
Finished Goods	$ 62,800	$ 77,800

• 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 33,800 machine-hours and incur $290,680 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $315,800.
• Raw materials were requisitioned for use in production, $307,800 ($280,200 direct and $27,600 indirect).
• The following employee costs were incurred: direct labor, $377,800; indirect labor, $96,800; and administrative salaries, $172,800.
• Selling costs, $147,800.
• Factory utility costs, $10,800.
• Depreciation for the year was $175,000 of which $170,000 is related to factory operations and $5,000 is related to selling, general, and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,160 machine-hours.
• Sales for the year totaled $1,310,000.

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.