Question: Please help with this managerial accounting question. Will be sure to leave a review. Thank you! 3. Baab Corporation inventory balances were as follows at
3. Baab Corporation inventory balances were as follows at the beginning and end of the year is a manufacturing firm that uses job-order costing. The company's Beginning Ending Raw materials Work in process Finished Goods Balance Balance S 14,000 S 22,000 S 27,000 9,000 S 62,000 S 77,000 The company applies overhead to jobs using a predeternmined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overbead cost. The following transactions were recorded for the year Raw materials were purchased, $315,000. . Raw materials were requisitioned for use in production, $307,000 (5281,000 direct and $26,000 indirect). The following employee costs were incurred: direct labor, $377.000, indirect labor, $96,000, and administrative salaries, $172,000. Selling costs, $147,000 .Factory utility costs, S10,000. . Depreciation for the year was $127,000 of which S120,000 is related to factory operations and $7,000 is related to selling, gencral, and administrative activities. year was 34,000 machine-hours. Sales for the year totaled $1,253,000 Manufacturing overhenad was applied to jobs. The actual level of activity for the Required: a. Prepare the journal entries for the above transactions b. Prepare a schodule of cost of goods manufactured c. Was the overhead underapplied or overapplied? By how macht? d. Prepare an income statement for the year. The company closes any underappliad or overapplied overhead to Cost of Goods Sold
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