Managerial Accounting

Frank Corporation is a manufacturing firm that usesjoborder costing. The company's inventory balances were as follows at the beginning and end ofthe yean Beg balances End balances | Raw Materials $14,000 $22,000 Work In Process $27,000 $9,000 | Finished Goods $62,000 $77,000 The company applies overhead tojobs 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 [show all the calculations to receive full points - send via email]: 1. Prepare a schedule of cost of goods manufactured. 2. Was the overhead underapplied or overapplied? By how much? 3. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold