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 yea: - 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 33,650 machine-hours and incur $279,295 in manufacturing overhead cost. The following transactions were recorded for the year: - Raw materials were purchased, $315.650. - Raw materials were requisitioned for use in production, $307,650 ( $280,350 direct and $27,300 indirect). - The following employee costs were incurred direct labor, $377,650; indirect labor, $96,650; and administrotive salaries. $172,650 - Selling costs, $147,650, - Factory utility costs, $10,650 - Depreciation for the year was $166,000 of which $151,000 is related to factory operations and $15,000 is related to selling. general, and administrative activities. - Manufacturing ovethead was applied to jobs. The actual level of activity for the year was 34,130 machine-hours. - Sales for the year totaled $1,295,000, Required: a. Prepare a schedule of cost of goods manufactured c. Prepare an income statement for the year. The company closes any underopplied or overapplied overhead to Cost of Goods Sold