Problem Bi Babb Company is a manufacturing firm that uses jou uses job-order costing. The company's the beginning and end of the year: inventory balances were as follows at the beginning and end Beginning Balance Ending Balance $11,000 $32,000 $14,000 Finished goods $108,000 $123,000 $15,000 Raw materials............ Work in process...... applies overhead to jobs using a predetermined overhead rate based line-hours. At the beginning of the year, the company estimated that estimated that it would work 17,000 machine-hours and incur $272.000 in manufacturing overne ufacturing overhead The company applies overhead to jo on machine-hours. At the beginning of the year, the cost. The following transactions were recorded for the year: Raw materials were purchased, $416,000. Raw materials were requisitioned for use in production, $412,000 $(376,000 direct and $36,000 indirect). The following employee costs were incurred: direct labor, $330,000; indirect labor, $69.000; and administrative salaries, $157,000. . Selling costs, $113,000. Factory utility costs, $29,000. Depreciation for the year was $121,000 of which $114,000 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 15,000 machine-hours. Sales for the year totaled $1,282,000. 121.000 depreciation Required:a. Prepare a schedule of cost of goods manufactured in good form. *b. Was the overhead underapplied or overapplied? By how much? +c. Prepare an income statement (with a COGS schedule) for the year in good form. The company closes any underapplied or overapplied manufacturing overhead to Cost of Goods Sold