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	$ 14,300	$ 22,300
Work in process	$ 27,300	$ 9,300
Finished Goods	$ 62,300	$ 77,300

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 33,300 machine-hours and incur $253,080 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased, $315,300.

Raw materials were requisitioned for use in production, $307,300 ($280,700 direct and $26,600 indirect).

The following employee costs were incurred: direct labor, $377,300; indirect labor, $96,300; and administrative salaries, $172,300.

Selling costs, $147,300.

Factory utility costs, $10,300.

Depreciation for the year was $145,000 of which $127,000 is related to factory operations and $18,000 is related to selling, general, and administrative activities.

Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,060 machine-hours.

Sales for the year totaled $1,265,000.

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.