TB Problem Qu. 3-252 Boab Corporation is a ... 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 Ending Balance Balance $ 15,000 $23,000 $2,000 $10,000 $ 63,000 $78. 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 34,000 machine hours and incur $306.000 in manufacturing overhead cost. The following transactions were recorded for the year Raw materials were purchased, $316,000 Raw materials were requisitioned for use in production, $308,000 ($280,000 direct and $28,000 indirect) The following employee costs were incurred direct labor, $378,000 indirect labor, 597,000, and administrative salaries, S173,000. Selling costs, 5148,000. Factory utility costs, $11,000. Depreciation for the year was $187,000 of which $174,000 is related to factory operations and $13,000 is related to selling general, and administrative activities Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34 200 machine hours Sales for the year totaled $1,330,000 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 Ending Balance Balance $ 15,000 $23,00 $ 28,000 $10,000 $ 63,000 $78,000 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 34.000 machine-hours and incur $306,000 in manufacturing overhead cost. The following transactions were recorded for the year Raw materials were purchased, $316,000. Raw materials were requisitioned for use in production, $308,000 ($280,000 direct and $28,000 indirect) . The following employee costs were incurred direct labor, $378,000, indirect labor, $97,000, and administrative salaries, $173,000. . Selling costs, $148,000. Factory utility costs $11,000 Depreciation for the year was $187,000 of which $174,000 is related to factory operations and $13,000 is related to selling general, and administrative activities Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,200 machine-hours. Sales for the year totaled $1,330,000 Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured Direct materials Beginning materials inventory 5 280,000 Total raw materials available 280,000 010254 Raw materials used in production 280,000 $ 280,000 eBook Total manufacturing costs 280,000 280.000 Cost of goods manufactured $ 280,000 Required A Required B > Required A Required B Required ints 2 01:02:44 Was the overhead underapplied or overapplied? By how much? eBook Required A Required B Required c Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Baab Corporation Income Statement Selling and administrative expenses: