Problem 3-151 Bakerston Company is a manufacturing...

Bakerston Company 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	$	11,500		$	15,600
Work in process	$	32,400		$	14,700
Finished goods	$	109,000		$	122,000

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 17,900 machine-hours and incur $268,500 in manufacturing overhead cost. The following transactions were recorded for the year:

	Raw materials were purchased, $412,000.
	Raw materials were requisitioned for use in production, $407,900 ($381,000 direct and $26,900 indirect).
	The following employee costs were incurred: direct labor, $340,000; indirect labor, $74,000; and administrative salaries, $159,000.
	Selling costs, $112,000.
	Factory utility costs, $24,000.
	Depreciation for the year was $121,000 of which $111,000 is related to factory operations and $10,000 is related to selling, general, and administrative activities.
	Manufacturing overhead was applied to jobs. The actual level of activity for the year was 15,000 machine-hours.
	Sales for the year totaled $1,290,000.

Required:
a.	Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "$" sign in your response.)

Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select)Beginning work in process inventoryBeginning finished goods inventoryBeginning raw materials inventoryEnding work in process inventoryEnding raw materials inventory	$
(Click to select)DeductAdd : (Click to select)Raw materials inventory, endingBeginning work in process inventoryEnding work in process inventoryPurchases of raw materialsFinished goods inventory, beginning
Total raw materials available
(Click to select)AddDeduct : (Click to select)Beginning raw materials inventoryEnding work in process inventoryEnding raw materials inventoryPurchases of raw materialsBeginning work in process inventory
Raw materials used in production
(Click to select)DeductAdd : (Click to select)Direct materialsDirect laborRaw materials inventory, beginningIndirect laborIndirect materials included in manufacturing overhead
(Click to select)Purchases of raw materialsDirect laborRaw materials inventory, endingRaw materials inventory, beginningEnding work in process inventory
(Click to select)Raw materials inventory, beginningManufacturing overhead cost applied to work in processDirect laborRaw materials inventory, endingPurchases of raw materials
Total manufacturing cost
(Click to select)AddDeduct : (Click to select)Purchases of raw materialsRaw materials inventory, endingRaw materials inventory, beginningEnding work in process inventoryBeginning work in process inventory
(Click to select)DeductAdd : (Click to select)Ending work in process inventoryBeginning work in process inventoryRaw materials inventory, beginningRaw materials inventory, endingPurchases of raw materials
Cost of goods manufactured		$

b.	Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value. Omit the "$" sign in your response.)

Manufacturing overhead (Click to select)underappliedoverapplied

$

c.	Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (Input all amounts as positive values. Omit the "$" sign in your response.)

Income Statement
(Click to select)Administrative salariesDepreciationDirect materialsSalesSelling costsCost of goods sold (adjusted)		$
(Click to select)Selling costsCost of goods sold (adjusted)DepreciationAdministrative salariesSales
(Click to select)Gross marginGross loss
Selling and administrative expenses:
(Click to select)DepreciationDirect materialsSelling costsInsurance expenseRent expenseAdministrative salaries	$
(Click to select)Rent expenseInsurance expenseDirect materialsSelling costsDepreciationAdministrative salaries
(Click to select)Direct materialsAdministrative salariesSelling costsInsurance expenseRent expenseDepreciation
(Click to select)Net operating incomeNet operating loss		$