S 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: Raw materials Work in process Finished Goods Beginning Balance Ending Balance $ 14,750 $ 22,750 $ 27,750 $ 62,750 $ 9,750 $ 77,750 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 33,750 machine-hours and incur $286,875 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,750. Raw materials were requisitioned for use in production, $307,750 ($280,250 direct and $27,500 indirect). The following employee costs were incurred: direct labor, $377,750; indirect labor, $96,750; and administrative salaries, $172,750. Selling costs, $147,750. B Factory utility costs, $10,750. Depreciation for the year was $172,000 of which $158,000 is related to factory operations and $14,000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,150 machine-hours. Sales for the year totaled $1,305,000. Required: a. Prepare a schedule of cost of goods manufactured. c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.