Bakerston Company is a manufacturing firm that uses job-order costing. The companys inventory balances were as follows at the beginning and end of the year:

	Beginning Balance	Ending Balance
Raw Materials	$14,000	$22,000
Work in Progress	$27,000	$9,000
Finished Goods	$62,000	$77,000

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 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased, $315,000

Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).

The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000

Selling costs, $147,000

Factory Utility Costs, $10,000

Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities.

Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours

Sales for the year totaled $1,253,000

REQUIRED:

1. Prepare a schedule of costs of goods manufactured
2. Was the overhead underapplied or overapplied? By how much?
3. Prepare a cost of goods sold statement for the year. The company closes any underapplied or overapplied overhead to costs of goods sold.