Question 2

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	$	14,200	$	22,200
Work in process	$	27,200	$	9200
Finished Goods	$	62,200	$	77,200

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 33,200 machine-hours and incur $245,680 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased, $315,200.

Raw materials were requisitioned for use in production, $307,200 ($280,800 direct and $26,400 indirect).

The following employee costs were incurred: direct labor, $377,200; indirect labor, $96,200; and administrative salaries, $172,200.

Selling costs, $147,200.

Factory utility costs, $10,200.

Depreciation for the year was $139,000 of which $120,400 is related to factory operations and $18,600 is related to selling, general, and administrative activities.

Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,040 machine-hours.

Sales for the year totaled $1,261,000.

Required:

Do not enter any commas (except for the pre-determined OH rate) and round to the nearest dollar

Based on the data presented above, complete the following Table

Pre-Determined OH Rate (round to 2 decimal places)	$
Direct Materials used in Production	$
Direct Labor	$377,200
Total Manufacturing Costs	$
Cost of Goods Manufactured	$
Adjusted Cost of Goods Sold	$
Total Selling and Admin Exp	$338,000
Operating Income	$