ESSAY/Problem Solving. 1) Bakerston Company is a manufacturing firm that uses job-order costing. The compan balances were as follows at the beginning and end of the year: Beginning Balance Raw Materials $14,000 Work in Process 27,000 Finished Goods 62,000 Ending Balance $22,000 9,000 77,000 The company applies overhead to jobs using a predetermined overhead rate based on = beginning of the year, the company estimated that it would work 33,000 machine-hou in manufacturing overhead cost. The following transactions were recorded for the yea Raw materials were purchased, $315,000. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct The following employee costs were incurred: direct labour, $377,000; indirect labo administrative salaries, $172,000. Selling costs, $147,000. Factory utility costs, $10,000. mixed Depreciation for the year was $127,000 of which $120,000 is related to factory op related to selling and administrative activities.rgin for May Manufacturing overhead was applied to jobs. The actual level of activity for the y hours. Sales for the year totalled $1,253,000. Required: a. Prepare a schedule of cost of goods manufactured in good form. b. Was the overhead underapplied or overapplied and by how much? c. Prepare an income statement for the year in good form. The company closes any underapplied or overapplied overhead to Cost of Goods