Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the peginning 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 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